Slump sale ≠ expense test: ITAT allows full loss on discontinued business

DCIT Vs Manipal Global Education Services Pvt. Ltd. (ITAT Bangalore) The ITAT Bangalore upheld the deletion of disallowance of ₹9.02 crore made by the AO, holding that expenses relating to discontinued operations cannot be restricted merely based on valuation figures used for slump sale. The assessee had sold a business segment (EdTech division) through slump sale and reported a loss of ₹13.03 crore from discontinued operations in its audited financials. The AO, relying on valuation report figures (which reflected loss only up to a certain date), allowed only proportionate loss of ₹4 cro...