In Brief
The Revenue appealed after the High Court dismissed its case on the ground that no substantial question of law was involved. The assessee had sold its entire manufacturing business as a going concern (slump sale) on 31 December 1990 for Rs 58.53 lakh. The Assessing Officer sought to tax it under Section 50(2) as short-term capital gain; the assessee claimed long-term treatment under Section 48. The Supreme Court held that Section 50(2) applies only to transfers of individual or blocks of assets, not to slump sales of entire businesses. Since the business was owned for over six years and sold in one go with all assets and liabilities, it constitutes a long-term capital asset and must be taxed accordingly. The appeal was dismissed.
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