Treatment as per Income Tax & Ind AS on slump sale between common control entities

Treatment as per Income Tax Act and Indian Accounting Standard in case of Slump sale / Sale of Division/ sale of undertaking between entities under common control for acquirer

Common Control: Common control business combination means a business combination involving entities or businesses in which all the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory.

Analysis: Division controlled by same entity pre and post Sale

Accounting Treatment under Ind AS 103, Business combinations:

As per Para 9-12 of Appendix C of Ind AS mentioned below –

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