Company Law : ♣ Section 134(5) of the Companies Act, 2013 requires board of directors of every company to state in its Directors’ Responsibi...
Goods and Services Tax : The transaction involves a global acquisition of a banking business by the Purchaser from the Seller. Consequent thereto, all asse...
Finance : The etymology of business refers to the state of being busy, in the context of the individual as well as the community or society....
Income Tax : PNB Finance Ltd. v. CIT - Where the Banking Undertaking, inter alia, included intangible assets like goodwill, tenancy rights, man...
CA, CS, CMA : The Economic Affairs Committee of the House of Lords questioned representatives of the four largest audit firms on the issue of "g...
Income Tax : The assessee is a foreign company, having a branch office as well as a subsidiary in India. The assessee decided to close down it...
Company Law : If the business is going to be paralyzed, then, the court in appropriate cases can, for the benefit and interest of the company, s...
Income Tax : Avaya Global Connect vs. ACIT (ITAT Mumbai) - Where the assessee transferred its undertaking under a scheme of demerger which prov...
♣ Section 134(5) of the Companies Act, 2013 requires board of directors of every company to state in its Directors’ Responsibility Statement that they have prepared the annual accounts on a going concern ♣ Also, Ind AS 1 – Presentation of Financial Statements and AS 1 – Disclosure of Accounting Policies requires the management to assess the entities ability to continue as a going concern.
The assessee is a foreign company, having a branch office as well as a subsidiary in India. The assessee decided to close down its branch office and transfer all its assets and liabilities as a going concern to its subsidiary. The assessee adopted C
The Economic Affairs Committee of the House of Lords questioned representatives of the four largest audit firms on the issue of “going concern” opinions during the financial crisis. In particular, why were there none for the banks that failed, were b
If the business is going to be paralyzed, then, the court in appropriate cases can, for the benefit and interest of the company, save the transaction involving sale of assets of a company in liquidation; it is for enabling the company to continue as a going concern and to protect the interest of shareholders and creditors that such a power is conferred and must be exercised under section 536(2) of the Companies Act.
The transaction involves a global acquisition of a banking business by the Purchaser from the Seller. Consequent thereto, all assets and liabilities in India will be acquired by the Purchaser from the Seller. The acquisition of the assets and liabilities in India will either be through: (a) slump sale process, in which the undertaking as a going concern will be transferred by the Seller to the Purchaser for a lump sum consideration, or (b) through a court approved scheme of reconstruction under section 394 of the Companies Act and section 44 of the Banking Regulation Act under which all the assets and liabilities will be transferred from the Seller to the Purchaser, or (c) individual transfer of assets and liabilities by the Seller to the Purchaser.
The etymology of business refers to the state of being busy, in the context of the individual as well as the community or society. In other words, to be busy is to be doing commercially viable and profitable work.In economics, business is the social science of managing people to organize and maintain collective productivity toward accomplishing particular creative and productive goals, usually to generate profit.
PNB Finance Ltd. v. CIT – Where the Banking Undertaking, inter alia, included intangible assets like goodwill, tenancy rights, manpower and value of banking licence, it was not possible to compute capital gains and, therefore, the amount of compensation received by the Banking Undertaking on its transfer was not taxable under section 45 of the Income-tax Act.
Avaya Global Connect vs. ACIT (ITAT Mumbai) – Where the assessee transferred its undertaking under a scheme of demerger which provided that neither the assessee nor its shareholders would receive any consideration from the transferee company as the value of the liabilities taken over were more than the value of the assets taken over and the assessee treated the difference between the said liabilities and assets as a capital reserve and the question arose whether such difference was assessable to tax
