TaxTMI 
TaxTMI 
1978 (4) TMI 74
X X X X Extracts X X X X
X X X X Extracts X X X X
....niture and fittings, tools and implements, laboratory equipments typewriters, book debts, advances and cash balances of each were valued separately. After adjustment of liabilities, the assessee-company agreed to pay a sum of Rs. 19,59,289.26 as price of the oil mills and the cold storage belonging to Messrs. Kamlapat Motilal. This valuation was done as on April 30, 1958, and the assessee-company agreed to pay this amount by its letter dated September 10, 1958. On the same day, Messrs. Kamlapat Motilal addressed a letter to the assessee agreeing to pay Rs. 12,80,945 for the movable assets minus liabilities of the Bhatni sugar mills owned by the assessee-company. In these letters, both concerns mentioned an arrangement between them for exc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the Tribunal. At the instance of the parties, the Tribunal has referred, for our opinion, the following three questions of law : "1. Whether, on the facts and in the circumstances of the case, the transaction was one whole or it involved two transactions, one pertaining to movable assets and the other pertaining to the immovable property ? 2. Whether the Tribunal was justified in holding that the transaction with regard to movable assets was a sale within the meaning of s. 10(2)(vii) of the I.T. Act, 1922 ? 3. Whether the Tribunal was justified in holding that the transaction pertaining to immovable property was an exchange and not sale within the meaning of s. 10(2)(vii) of the I.T. Act, 1922 ? " The question is whether the tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ected to a different treatment. The board of directors of the assessee-company passed the following resolution : " 1.That the company do exchange the assets and liabilities of the Bhatni factory belonging to the company for the assets and liabilities of the oil mills and cold storage belonging to Messrs. Kamlapat Motilal. 2. That the company do accept a liability of Rs. 6,78,343.50 on account of the reciprocal values of the movable assets of the two concerns, proposed to be exchanged. 3. That the company do accept the exchange of immovables for a net amount of Rs. 54,000 receivable by the company on the execution of the deed of exchange ..........." It will be seen that in respect of immovables the expressed intention was to exchang....