CIT Vs. ANSAL PROPERTIES AND INFRASTRUCTURE LTD

JUDGEMENT

(1.) Having heard learned counsel for the parties, we frame the following substantial question of law:

(2.) These appeals under Section 260A of the Income Tax Act, 1961 (Act, for short) have been preferred by the Revenue in the case of Ansal Properties and Infrastructure Limited (respondent assessee) for the Assessment Years 1989-90 and 1990-91. Relevant facts may be noticed.

(3.) During the period relevant to the Assessment Year 1989-90, the respondent-assessee had sold the entire plant and machinery of their paper division and had stopped and ceased to carry on business in their paper division with effect from 2nd June, 1987. The Assessing Officer after examining the factual matrix came to the conclusion that the manufacturing activity in the paper division had stopped even before 30th April, 1987. The Assessing Officer noticed that furniture and fixture having written down value of Rs.2,39,459/- had been sold for a sum of Rs.1,50,000/- resulting in a shortfall/loss of Rs.89,459/-. Plant and machinery, including affluent tank, laboratory equipment, tube well etc. had been sold for Rs.2,31,94,888/- resulting in short term capital gain of Rs.1,33,22,068/- as the written down value of the said plant and equipment was Rs.98,72,820/-.