COMMISSIONER OF INCOME TAX Vs. BHARAT BIJLEE LTD.

JUDGEMENT

(1.) THIS appeal filed by the Revenue challenges the judgment and order passed by the Income -tax Appellate Tribunal ("the ITAT" for short) dated March 11, 2011, in Appeal No. 6410/Mum/2008. The assessment year in question is 2005 -06. The Revenue submits that each of the questions and which are set out at paragraph 4(i), 4(ii) and 4(iii) are substantial questions of law arising for determination in this appeal. The Revenue submits that the Income -tax Appellate Tribunal erred in reversing the order passed by the Commissioner of Income -tax (Appeals) dated July 25, 2008, and that of the Assessing Officer dated December 31, 2007.

(2.) IT is submitted that the return of income declaring the total income of Rs. 25,12,50,208 was filed by the assessee on October 31, 2005. Subsequently, the case was selected for scrutiny for issue of statutory notice under section 143(2) of the Income -tax Act, 1961 dated October 26, 2006, which was served on the assessee. The notice under section 143(2) was issued on October 26, 2006, and was served on the assessee on October 27, 2006. The notice under section 143(1) of the Income -tax Act, 1961, along with the questionnaire was issued. The Assessing Officer, inter alia, disallowed the claim of the assessee observing that the transfer of its lift division is an exchange and not a sale and, therefore, not liable to tax. The Assessing Officer held that in section 2(42C) of the Income -tax Act, the term "slump sale" has been defined. The transaction in this case is squarely falling within this definition. Therefore, the Assessing Officer held that the transfer of the lift division is a slump sale and was taxable in terms of section 50B of the Income -tax Act. It was taxed accordingly.

(3.) MR . Suresh Kumar, learned advocate appearing on behalf of the Revenue in support of this appeal, relied upon a judgment of the Division Bench of the Delhi High Court in the case of SREI Infrastructure Finance Ltd. v. ITSC, [2014] 2 ITR -OL 474 (Bom.) delivered in Writ Petition (Civil) No. 1592 of 2012, decided on 30th March, 2012.