section 50B of the Income Tax Act, 1961- Capital gain - Slump Sale- Transfer of assessee's non transmission and distribution business in exchange of issuance and allotment of equity shares under a scheme of arrangement approved by the Calcutta High Court under sections 391 and 393 of the Companies Act, 1956 is a slump sale and exigible to capital gain tax under section 50B.

Facts: Whether the Tribunal was correct in holding that the transfer of assessee's non transmission and distribution business valued at Rs. 41.3 Crores in exchange of issuance and allotment of equity shares under a scheme of arrangement approved by the Calcutta High Court under sections 391 and 393 of the Companies Act, 1956 is a slump sale and exigible to capital gain tax under section 50B ?

Held, that there is no necessity to analyze the circumstances in which section 50B was inserted in the statute book. The issue as to whether the conclusions reached by the Hon'ble Supreme Court in the case of Motors and General Stores (P.) Ltd. would still hold good or that they would not be the enabling principles after the amendment to the Income-tax Act does not arise at all. We proceed on the footing that the statute was amended with some specific object and purpose. However, we are in agreement with the learned senior counsel appearing for the assessee before us that the applicability of section 50B would have to be considered in the facts and circumstances of each case. If the transfer is by way of sale, only then it could be termed as a slump sale and then section 50B would be attracted. It is in these circumstances and going by the facts of the present case that we have decided the present appeal. In the result, appeal is allowed and the substantial question of law framed is answered in favour of assessee. - AREVA T & D (I) LTD. V/s CIT - [2020] 29 ITCD Online 003 (MAD)