Case Law Details
Case Name : The ITO Vs M/s. Zinger Investments (P) (ITAT Hyderabad)
Appeal Number : ITA. No. 275/Hyd/2013
Date of Judgement/Order : 21/08/2013
Related Assessment Year : 2007- 2008
Courts :
All ITAT ITAT Hyderabad
Become a Premium member to Download.
If you are already a Premium member, Login here to access.
Sponsored
In the light of ratio laid down as above by the Hon’ble Supreme Court and the Tribunal since there is no monetary consideration involved in transferring the manufacturing division with all its assets and liabilities to M/s. Novapan Industries Ltd. under scheme of amalgamation approved by the Hon’ble High Court of A.P. it cannot be considered to be a slump sale within the meaning ascribed under section 2(42C) of the Act so as to attract the liability of the capital gain under section 50B of the Act.
INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “A” : HYDERABAD
BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sponsored
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
This case also appears to be a case of un-necessary litigation by revenue. The revenue authorities must consider all leal provisions of the IT Act and Companies Act and the purpose of transactions carried under legal frame work. The transaction is also not a transfer on overall consideration of shceme of law. The Aactual cost or WDV of assets are considered as actual cost or WDV of assets of previous owner in such cases. Thus , levy of tax is not justified.
We professionals must thank the revenue authorities for such litigation as it provides jobs and professional assignments. However we must also express regretts because such litigation only causes brain drain and wastage of valuable time of officers, professionals and courts. It is only such litigation that in our society we find higher remuneration for professions rendering legal services (though about 2/3 rd cased are in nature of brain drain) in comparison to doctors, engineers and scientists who render productive services.
I find myself fortunate because my children, by their own choice choose to study science – my eldest daughter became a Doctor , younger daughter recently joined B.Tech/ B.E. first year in Computer Science and Engineering and son (class XI) is targetting to get admission in Engineering course. I hope that
they will do more productive jobs than me.
Some times I feel that a carpenter making an item of furniture by working on several pieces of wood is really doing much better and productive job than myself contesting cases of high pitched assessments having no merit at all. The unfortuante aspect is that even an addition having not merit can be confirmed by CIT(A) unless it is properly prepared, represented and contested. Though there is no productive work, yet we have to do to it to save from result of illegal, unjust, and wrong actions of authorities. In that way such work though not productive yet become more important. And that is the unfortuante aspect of our legal and administrative system. This muyst come to an end to save our human respurces and to use them in more productive work.