COMMISSIONER OF INCOME TAX Vs. MAX INDIA LTD.

JUDGEMENT

(1.) THIS appeal has been preferred by the Revenue under s. 260A of the IT Act, 1961 (for short 'the Act') against the order proposing to raise following substantial questions of law : "(i) Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the sale of Betalactum division by the assessee company was a slump sale to which ss. 50 and 50A are not applicable and that long -term capital gain is to computed by indexing the cost of acquisition of the Betalactum division and its improvement -

(2.) THE assessee claimed loss of Rs. 12,67,69,823 under the head "Long -term capital loss" or the sale of Betalactum division on slump sale basis by deducting, from the sale proceeds, the acquisition of the Betalactum division and improvement. The AO rejected the plea of the assessee and held that by virtue of provisions of ss. 50 and 50A, excess of sale consideration over the WDV of block of assets, was liable to tax as short -term capital gain. It was also held that which view has been upheld by the Tribunal.

(3.) WE have heard learned counsel for the parties and perused the record.