CICB-CHEMICON P. LTD. Vs. COMMISSIONER OF INCOME TAX AND ORS.

JUDGEMENT

(1.) The revenue has preferred these two appeals against the common order passed by the Tribunal affirming the findings recorded by the First Appellate Authority that the sale was a slump sale and therefore, computation of capital gain should be on that basis.

(2.) These two appeals are admitted for considering the following substantial question of law:-

(3.) The assessee is engaged in the business of manufacturing, sales and distribution of Pure Carbondioxide (CO2) Liquid and Storage Systems. The assessee had transferred a part of business as a going concern to M/s. Praxair Carbondioxide Pvt. Ltd,. and the consideration received was not offered to tax. Notice under Section 148 was issued to the assessee on 08.04.2002 after recording the reasons for re-opening. In response to the said notice, the assessee furnished the details as called for. Thereafter, the assessing authority found that the assessee has not sold all the assets. Some buildings, machinery, office equipments, computers and vehicles have not been sold by the assessee and some cylinders have also been retained by the assessee even after the transfer of CO2 business. Therefore, the assessing authority was of the view that the entire assets forming part of the business are not sold. The nomenclature used in the agreement with M/s. Praxair Carbondioxide Pvt. Ltd., does not make the sale, a slump sale. In the case of slump sale, all assets have to be transferred, which is not the case here in the assessee's case. Therefore, the authorities proceeded to levy tax. Aggrieved by the said order, the assessee preferred appeal to the Commissioner of Income Tax (Appeals-I), Bangalore.