Case Fact: Whether in a sale of the entire undertaking (bakery) as a whole, if two separate documents with respect to movable and immovable (Land) assets are executed, the provision of section 50 of Income-tax Act, 1961, will be applicable?
Asst.C.I.T. Vs. Raka Food Products
Decision: Held by the Hon"ble court that once the immovable property forms part of the assets of the undertaking sold as a whole the sale consideration cannot be bifurcated even though transfer of immovable property could only be made through a registered sale deed, hence section 50 could not be applied as it is applicable when movable assets are alone transferred. The gain is to be assessed as long term capital gain and exemption u/s 54E be granted.