TaxTMI 
TaxTMI 
2017 (2) TMI 546
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..... did not raise any serious objection. Delay is condoned and the appeal is admitted. 3. Appeal of the Revenue is taken up first for disposal. 4. Revenue is aggrieved on deletion of addition of Rs. 3,00,00,000/- made by the A.O. considering the sale of undertaking as slump sale for the impugned assessment year. 5. Facts apropos are that the assessee carrying on a business of SKODA Car dealership, had filed return for the impugned assessment year, declaring NIL income under normal provisions of Income-tax Act, 1961 (in short 'the Act') and book profit of Rs. 1070/- under Section 115JB of the Act. During the course of assessment proceedings, it was noted by the Assessing Officer that the assessee had entered into a Memorandum of Und....
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....essee. Contention of the assessee was that the agreement had expired within three months of entering into it by virtue of clause 4 therein. Assessee also stated that there was individual valuation of assets and since individual values were assigned, Section 2(42C) could not be applied. Reliance was also placed on the judgment of Hon'ble Apex Court in the case of E.D. Sassoon & Co. Ltd. v. CIT (1954) 26 ITR 27. However, the A.O. did not accept these contentions. According to him, the sum of Rs. 3,00,00,000/- received by the assessee was on account of a slump sale and could only be considered as short-term capital gains. An addition was accordingly made. 6. In its appeal before the CIT(Appeals), argument of the assessee once again was th....
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....transfer the SKODA car dealership and hence there was no change of dealership. Thus the factual position has been misinterpreted by the A.O. in the impugned assessment order. Further, the A.O. in the subsequent assessment year 2012-13 vide Asst.Order date 30.03.2015 in para No.3.2 has observed that, the above said agreement has not been acted upon and thus, no transfer had been taken place. In these circumstances, the addition on account of slump sale is found to be incorrect and accordingly, the said addition ofRs. 3,00,00,000/- is hereby deleted and this ground of appeal is allowed." 7. Now before us, the Ld. Departmental Representative, strongly assailing the order of the CIT(Appeals), submitted that the agreement could be clearly cons....