GETWELL MEDICARE Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is a partnership firm stated to have been set up on 9/6/1997. It is engaged in the business of wholesale dealerships in pharmaceutical products. The petitioner having PAN No.AADFP2868C is an assessee under the provisions of the Income Tax Act. The petitioner, vide business transfer agreement dtd. 20/12/2018 transferred the business of the firm without assigning any value to its assets and liabilities, under the 'slump sale' method on a 'going concern basis', for a lump sum consideration of Rs.10,04,15,000.00 to M/s Getwell Medical Solution Private Limited, an alter ego of the petitioner.

(2.) The petitioner had computed capital gains as per Sec. 50B of the Income Tax Act, 1961 as the petitioner opted for 'slump sale'. The petitioner has approached this Court for a writ, order or direction in the nature of mandamus commanding the first respondent i.e. the Union of India to notify 'long term specified assets' for availing capital gains exemption under Sec. 54EE of the Income Tax Act, 1961 with appropriate extension of time period under Sec. 54EE and Explanation-2 therein or any such appropriate manner known to law.

(3.) Sec. 54EE allows capital gains exemption upto a limit of Rs.50.00 lakhs provided the capital gain proceeds are invested by the assessee in the long term specified assets notified under Sec. 54EE for a minimum period of 3 years. For ready reference, Sec. 54EE is extracted hereunder: