Case Law Details
L&T Finance Ltd. Vs DCIT ( ITAT Mumbai)
We have given a thoughtful consideration to the facts of the case and are of the considered view that ‘Slump sale’ as defined in section 2(42C) means the transfer of one or more undertakings as a result of the sale for a lump sum consideration, without values being assigned to the individual assets and liabilities in such sales.
We further find that the term ‘Undertaking’ has been defined in the Explanation 1 of section 2(19AA), which therein encompasses within its gamut any part of an undertaking, or a unit or division of an undertaking or a business activity taken as a whole, but does not include assets and liabilities or any combination thereon not constituting a business activity.
We shall in the backdrop of the aforesaid statutory provisions now adjudicate as to whether the amount of Rs. 9,80,50,000 (supra) received by the assessee in lieu of transfer of the business leads to L&T Infotech Ltd. could be categorized as an amount received in lieu of a slump sale transaction, which thus could be brought within the sweep of section 50B.
We are of the considered view that as contemplated under section 2(42C) a slump sale presupposes the transfer of one or more undertakings for a lump sum consideration without values being assigned to the individual assets and liabilities.
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