Section 43B Claim Rejected as Deemed Payment Theory Disallowed

DCIT Vs Corteva Agriscience Services India Private Limited (ITAT Hyderabad) No ‘Deemed Payment’ Under Section 43B: Transfer of Employee Liabilities on Slump Sale Not Enough — ITAT Hyderabad Reverses CIT(A) The Hyderabad ‘B’ Bench of the Income Tax Appellate Tribunal, Hyderabad Bench allowed the Revenue’s appeal for AY 2019-20 and held that employee-related liabilities transferred under a slump sale do not qualify for deduction under section 43B in the absence of actual payment. The assessee, Corteva Agriscience Services India Pvt. Ltd., had transferred one of its business undertaki...