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TMI Blog1985 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... g and land together with lifts, transformers, tubewells and other assets therein in the assessment year 1973-74. The original cost of the said assets was Rs. 16,13,596 for the land and building and that of lifts, transformers and tubewells was Rs. 2,15,763. The consideration for the sale was Rs. 18,00,000. At the time of assessment, the Income-tax Officer found that the written down value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original cost of land and building including the depreciable assets from the sale consideration received, he computed that there was a profit of Rs. 29,359. He held that as the original cost of the depreciable assets was Rs. 2,15,963 and the written down value was Rs. 1,09,555, there was a profit under section 41(2) which was computed at Rs. 1,06,208. On appeal, it was held by the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke ?" It appears that following the decision of the Supreme Court in CIT v. Mugneeram Bangur & Co. [1965] 57 ITR 299, the Commissioner of Incometax (Appeals) proceeded on the basis that where the business is sold as, a whole as a going concern, the question of separate computation of the value of various assets and stocks in trade does not arise at all but only capital gain or loss has to be comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e errors in this manner, vide ITO v. Arvind N. Mafatlal [1962] 45 ITR 271 (SC). For the reasons as aforesaid, we agree with the order of the Tribunal rejecting the application of the Revenue under section 256(1) of the Income-tax Act, 1961.
The rule nisi is discharged and the application is dismissed.
There will be no order as to costs.
MUKUL GOPAL MUKHERJI J.-I agree. X X X X Extracts X X X X X X X X Extracts X X X X
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