PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL -1, KOLKATA Vs. HINDUSTAN ENGINEERING AND INDUSTRIES LIMITED

JUDGEMENT

(1.) This appeal by the revenue filed under Sec. 260A of the Income Tax Act, 1961 (the 'Act' for brevity) is directed against the order dtd. 16/3/2016 passed by the Income Tax Appellate Tribunal, "C"? Bench, Kolkata (the 'Tribunal') in ITA No. 330/Kol/2013 for the assessment year 2009-10.

(2.) The revenue has raised the following substantial questions of law for consideration:-

(3.) The assessee filed its return of income of the assessment year 2009-2010 which was processed under Sec. 143 (1) of the Act. Subsequently, the case was selected for scrutiny and notices under Sec. 142(1) of the Act were issued and the case was discussed with the assessee. During the year under assessment, the assessee company was engaged in activities of manufacturing and selling of chemicals, castings, steel, wagons, points and crossings, jute and petrochemicals etc. During the scrutiny assessment among other things, the assessing officer noticed that the assessee company is having various business units namely, railway wagon making unit, jute processing unit and chemical unit at Gujarat and Haldia (West Bengal). Each of these units was independent profit centres for which separate books of accounts were maintained by the assessee company. The assessing officer found that the assessee company has sold its chemical unit at Haldia to M/s. Petro Carbons and Chemicals Pvt. Ltd. and the copy of the agreement was produced. On examining the agreement, the assessing officer was of the view that the same qualified as a slump sale as defined under Sec. 2(42C) of the Act and accordingly, proceeded to complete the assessment by an order dtd. 28/12/2011.