TaxTMI 
TaxTMI 
2019 (7) TMI 706
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....2. The appeal was admitted on 10.11.2009 on the following substantial questions of law: "(i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in quashing the order passed by the Commissioner of Income-tax under Section 263 of the Income-tax Act, even though the order passed by the assessing officer is erroneous and prejudicial to the interest of the revenue and failed to apply his mind to the case in all its perspectives of the case? And (ii) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in law in holding Section 50B was not applicable to the facts of this case, even though the transfer of the business undertaking as a wh....
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....3 ITR 83 (SC), the Court had pointed out that the phrase "prejudicial to the interest of the revenue" under Section 263 of the Act has to be read in conjunction with the expression "erroneous" order passed by the Assessing Officer. It was further pointed out that every loss of revenue as a consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interest of the revenue. An illustration was pointed out stating that when the ITO adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the ITO has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view....
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....remaining assets, which were not subject to depreciation, were transferred at book value being cost to the assessee. The details as to how the value of the assets adopted for the purpose of transfer was also indicated. With regard to the proposal made by the Assessing Officer for reopening the assessment by proposing to invoke Section 50B of the Act, the assessee stated that as per Section 2(42C) of the Act "Slump Sale" has to be defined to mean the transfer of one or more undertaking as a result of the sale for lumpsum sale without values being assigned to the individual assets and liabilities in such sales. It was further stated that in the assessee's case, the transfer price was based on the individual assets and liabilities of the u....