Sale of business as a whole required for turnover exemption; mere disposal of stock-in-trade does not qualify.

Exemption under Rule 5(1)(h) of the Turnover and Assessment Rules was available only on a sale of the business as a whole, not on a mere disposal of stock-in-trade and some assets. Where the seller continued to carry on business and retained business assets, the transaction did not satisfy that requirement. On the materials considered by the assessing authorities and the Tribunal, the sale was not of the business as a whole, and the exemption claim therefore failed.

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Issues: Whether the assessee was entitled to exemption under Rule 5(1)(h) of the Turnover and Assessment Rules for amounts realised on sale of its stock-in-trade and assets as a sale of its business as a whole.

Analysis: The exemption applied only where there was a sale of the business as a whole. A mere sale of the entire stock-in-trade did not satisfy that requirement when the seller continued to carry on business and retained some business assets. On the materials before the assessing authorities and the Tribunal, the transaction did not amount to a sale of the business as a whole.

Conclusion: The claim for exemption under Rule 5(1)(h) failed and the assessment on that point was upheld.

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