TaxTMI 
TaxTMI 
2004 (9) TMI 75
X X X X Extracts X X X X
X X X X Extracts X X X X
....atment of the loss arising on account of transfer of land measuring 4.063 hectare to the forest department in lieu of the use of forest land for laying the drainage for discharge of effluent. The Assessing Officer treated the loss as capital loss whereas according to the assessee, the same ought to have been allowed as "business loss". The Tribunal in paragraph 18 of its order has observed as under: "It is admitted by the assessee that the land transferred to the forest department was held as capital asset. Sub-clause (i) of clause (47) of section 2 of the Income-tax Act, 1961, defines 'transfer' in relation to a capital asset, includes, the sale, exchange or relinquished the land measuring 4.063 hectares in favour of the forest department....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ital gains" could be determined. At the outset, this contention cannot be accepted because the Tribunal has clearly noticed that it was an admitted position that the land in question was held as a capital asset by the assessee and not as a business asset. It has also been noticed that the assessee had relinquished the land in lieu of forest department allowing use of their land for laying down the drainage. The Tribunal has rightly observed that the said right can be assessed in monetary value which would be the consideration for the transfer of capital asset. Even otherwise, even if it was to be accepted that no loss under the head "Capital gains" could be determined, it is not understood as to how this fact would entitle the assessee to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and carefully considered the rival submissions. We have also examined the facts, evidence and material on record. The basic facts of the case are not in dispute. It is a fact that the assessee purchased the paper division from M/s. Zenith Ltd., as a going concern. A copy of the agreement placed on file clearly states that the vendor had sold the paper division together with property, plant and machinery, all the licences capacities, permits and quota rights relating to the said paper division. No doubt clause 2 of the agreement refers to that the benefits of all licences, entitlements, quota rights and all other benefits would be without any consideration. But it is a fact that when the unit is sold as a going concern, the same does not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oi and Consultants (P) Ltd., for acquisition of the capital assets. In the light of these facts and circumstances of the case, we are of the considered opinion that the authorities below were justified in allocating an amount of Rs. 10,18,28,343 for acquisition of capital assets for the purpose of allowing depreciation. We do not find any infirmity in the order of the Commissioner of Income-tax (Appeals). Then the same is upheld and this ground of appeal is dismissed." We are in agreement with the finding recorded by the Tribunal. Admittedly, the amount of Rs. 14.75 crores was the consideration for the entire unit as a going concern. The assessee has placed no material to give bifurcation of costs towards various assets. Under such circums....