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of <h1>High Court affirms Tribunal decision in favor of assessee, addressing sale transaction details</h1> <h3>PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL -1, KOLKATA Versus HINDUSTAN ENGINEERING AND INDUSTRIES LIMITED</h3> PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL -1, KOLKATA Versus HINDUSTAN ENGINEERING AND INDUSTRIES LIMITED - [2023] 453 ITR 758 (Cal) Issues:1. Whether the sale of the chemical unit should be treated as a slump sale or an itemized saleRs.2. Whether the addition made by the assessing officer under specific sections of the Income Tax Act should be deletedRs.3. Whether the Tribunal erred in treating the sale as itemized without considering relevant case lawsRs.4. Whether the impugned order is perverse, bad in law, and a product of non-application of judicial mindRs.Analysis:Issue 1:The assessing officer considered the sale of the chemical unit as a slump sale, but the assessee contended it was an itemized sale. The Commissioner of Income Tax (Appeals) upheld the slump sale classification. However, the Tribunal disagreed, stating that the unit was not sold as a going concern but only specific assets were transferred at predetermined prices. The Tribunal analyzed the agreement and addendum, noting that individual assets were sold separately, not as a lump sum. The Tribunal's decision was based on a detailed examination of the facts and provisions of the Act, concluding that it was not a slump sale.Issue 2:The assessing officer made an addition under specific sections of the Income Tax Act, which the CIT(A) confirmed. However, the Tribunal, after thorough scrutiny, found that the sale did not qualify as a slump sale. The Tribunal highlighted that the assets sold were determined individually with separate consideration, and liabilities were not transferred. The Tribunal referred to relevant case law and held that the sale could not be considered a slump sale. The Tribunal's decision was based on a comprehensive analysis of the facts and legal provisions.Issue 3:The Tribunal's decision was challenged by the revenue, arguing that the Tribunal erred in its factual assessment. The revenue contended that if the Tribunal had determined the facts incorrectly, the High Court could interfere. However, the High Court found that the Tribunal had not made any erroneous determinations and had correctly analyzed the issue. The High Court concluded that there was no basis for interference under Section 260A of the Act.Issue 4:The respondent assessee pointed out that the Tribunal had correctly referred to a previous decision in a similar case. The High Court found no merit in the revenue's appeal and dismissed it, answering the substantial questions of law against the revenue. The High Court also rejected the connected application following the dismissal of the appeal.In conclusion, the High Court upheld the Tribunal's decision, ruling in favor of the assessee and dismissing the revenue's appeal. The judgment provided a detailed analysis of the sale transaction, addressing the classification of the sale, additions made by the assessing officer, and the application of relevant case laws.
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