Allowing the appeal of the assessee the Court held that The mere use of the expression consideration for transfer was not sufficient to describe the transaction as a sale. The transfer, pursuant to approval of a scheme of arrangement, was not a contractual transfer, but a statutorily approved transfer and could not be brought within the definition of the word sale. The word sale is not defined under the Income-tax Act hence the definition of sale as defined under other statute to be considered such as sale of Goods Act,1930, Transfer of Property Act, 1882. Accordingly the Court held that the Exchange is not covered. (AY.2006-07)
Areva T & D India Ltd. v. CIT (2020) 428 ITR 1/317 CTR 633/195 DTR 361 (Mad.)(HC) Editorial: SLP is granted to the revenue , CIT v. Areva T & D India Ltd ( 2021 ) 281 Taxman 217 ( SC) , Finance Act, 2021 inserted , Explanation 3.—For the purposes of this clause, “transfer” shall have the meaning assigned to it in clause (47)
S. 2(42C) : Slump sale-Capital gains-Exchange Assets transferred to subsidiary Company in accordance with scheme approved by High Court – No slump sale for purposes of capital gains tax. [S. 45, 50, 50B, Sale of Goods Act, 1930, S 2(10), Transfer of Property Act, 1882, S.54, 118, Companies Act, 1956, 391, 394]