HINDUSTAN LEVER LTD Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) The short question involved in this writ application is whether the appropriate authority under Chapter XX-C of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), was justified in not disposing of the petitioners' statement under Form No. 37-I which had been submitted by the petitioners under Section 269UC of the Act.

(2.) The facts are not in dispute. Petitioner No. 1 being desirous of transferring its industrial undertaking at Jagatdal, Barrackpore, North 24-Parganas, to Lipton India Limited as a going concern entered into an agreement with Lipton India Ltd. on November 8, 1991. That agreement records that petitioner No. 1 would transfer the undertaking to Lipton subject to obtaining approval from the authorities concerned including the Reserve Bank of India under the Foreign Exchange Regulation Act, 1973, and the Government of West Bengal under the Urban Land (Ceiling and Regulation) Act, 1976. The agreement envisages the transfer of the undertaking as a going concern together with land, building, machinery, equipment, movable properties, stock-in-trade as well as unionised and management employees of the undertaking with continuity of service and full protection to their existing terms and conditions of service. The consideration in actual terms apart from various other covenants/rights/ obligations was Rs. 14.87 crores.

(3.) On January 16, 1992, the Reserve Bank of India intimated the petitioners that it was agreeable to the transfer of the undertaking inclusive of land, buildings, plant, machinery, stores, raw materials and finished goods to Lipton as a going concern subject to various conditions.