In Brief
In this income tax appeal, the Revenue challenged the treatment of a slump sale of an entire running business as a long-term capital gain. The assessee sold its entire manufacturing business with all assets and liabilities in one transaction in 1990. The Assessing Officer applied Section 50(2) treating it as short-term capital gain; the assessee contended it was a slump sale qualifying as long-term capital gain under Section 48. The Supreme Court upheld the lower authorities, holding that Section 50(2) applies only to transfers of individual asset blocks, not entire businesses. A slump sale of a running concern, held long-term, constitutes a long-term capital asset transaction taxable under Section 48.
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