The Court held that\u00a0 the assessee was non-suited primarily on the ground that it had accepted the transfer to be a sale falling within the provisions of section 50B of the Act, and approached the bond issuing authorities for investment in certain bonds in terms of section 54EC of the Act to avoid payment of capital gains tax. The Assessing Officer, the Commissioner (Appeals) and the Tribunal had committed a fundamental error in shutting out the contention raised by the assessee solely on the ground that the assessee approached the bond issuing authorities for availing of the benefit under section 54EC. In the assessee\u2019s case, all the relevant facts were available even before the Assessing Officer while the scrutiny assessment was in progress. Therefore, there was no estoppel on the part of the assessee to pursue its claim. The fundamental legal principle is that there is no estoppel in taxation law. An alternative plea can be raised and it can even be a plea which is contradictory to the earlier plea. Court also held that\u00a0 the Tribunal had committed a factual mistake in referring to a valuation report not concerning the transaction, which was the subject matter of assessment. In the statement filed under section\u00a0393\u00a0of the Companies Act before the High Court. In the scheme of arrangement there was no monetary consideration, which was passed on from the transferee-company to the assessee, but there was only allotment of shares. There was no suggestion on behalf of the Revenue of bad faith on the part of the assessee-company nor was it alleged that a particular form of the transaction was adopted as a cloak to conceal a different transaction. The mere use of the expression \u201cconsideration for transfer\u201d 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.( AY.2006-07)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 50B : Capital gains \u2013 Slump sale – Assets transferred to Subsidiary- Allotment of Shares \u2014 Scheme approved by High Court \u2014 Not slump sale for purposes of capital gains Tax \u2014 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 -Claim which was not raised in return or revised return \u2013 Appellate authorities must consider the claim if facts are on record \u2013 No estoppel in taxation law – [ S.2(42C) 45 , 54EC , Companies Act , S. 393, 394, Transfer of property Act, 1882 S.118 , Sale of Goods Act , 1930 , S.2(10) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14697","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3P3","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14697"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14697\/revisions"}],"predecessor-version":[{"id":14698,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14697\/revisions\/14698"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}