Slump Sale

Slump Sale and Its Taxation

Income Tax - SLUMP SALE AND ITS IMPLICATIONS A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. Tax Effect in Slump Sale The gain or loss resulting out of a slump sale shall be a Capital Gain/Loss under […]...

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Definition of term ‘slump sale’ amended to replace word ‘sales’ with ‘transfer’

Income Tax - Slump sale is defined in clause (42C) of section 2 of the Act, as the transfer of one or more undertaking, by any means, for a lump sum consideration without values being assigned to individual assets and liabilities in such sales. Vide the Finance Act, 2021, the definition of ‘slump sale’ was amended to expand […]...

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Slump sale: Provide relief from unintended adverse impact of Rule 11UAE

Income Tax - BCAS made a representation to CBDT and Requested for relief from unintended adverse impact of Rule 11UAE of the Income-tax Rules, 1962 for slump sale transactions. Text of the representation is as follows:- Bombay Chartered Accountants Society  Harnessing Talent and Providing Quality Service 7, Jolly Bhavan 2, Ground Floor, New Marine Li...

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Plugging loopholes within Section 50B governing Slump Sale Transactions

Income Tax - Plugging loopholes within Section 50B governing Slump Sale Transactions : Amendments by Finance Act, 2021 This presentation would aim to simply explain what a slump-sale is and proceed to explain the concept of a slump sale in a tax perspective due to several issues faced pertaining to the tax-computation mechanism of a slump sale and [&h...

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Whether Sum Received By Holding Company From Subsidiary Under Scheme Approved By High Court -Considered As Slump Sale

Income Tax - Whether Sum Received By Holding Company From Subsidiary Under Scheme Approved By High Court -Considered As Slump Sale Whether any sum received from a subsidiary company by a holding company under scheme of arrangement sanctioned by High Court under provisions of Section 391 to 394 of the Companies Act, 2013 , be treated as ‘Slump [&...

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Depreciation eligible on Goodwill acquired under slump sale agreement

AVIS Hospitals India Limited Vs ACIT (ITAT Hyderabad) - ITAT held that by acquiring business rights along with tangible assets, the assessee got an up and running business and the specified intangible assets acquired under slump sale agreement are in the nature of any other business or commercial rights of a similar nature on which depreciation is allowa...

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HC deletes disallowance on Account of Slump Sale following its decision for earlier year

PCIT Vs Akzo Noble India Limited (Calcutta High Court) - PCIT Vs Akzo Noble India Limited (Calcutta High Court) Issue– Whether on the facts and in the circumstances of the case the Learned ITAT, Kolkata has erred in law in deleting the disallowance of sum of Rs.3.50 Crores and Rs.2.11 Crores for the assessment year 2006-07 and 2007-08 respectively o...

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Regular Vs. Slump Sale: Assessee cannot be allowed to take shifting stands

Emil Pharmaceutical Industries Private Limited Vs DCIT (ITAT Mumbai) - Emil Pharmaceutical Industries Private Limited Vs DCIT (ITAT Mumbai) In this case learned CIT(A) has noted that the assessee has not produced supporting documents such as the list of employees at the time of the sale, electricity bills and other details necessary to establish the existence of an und...

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GST on slump sale – AAR allows withdrawal of Application

In re NIKO (NECO) Limited (GST AAR Andhra Pradesh) - In re NIKO (NECO) Limited (GST AAR Andhra Pradesh) If transfer of Block Interest qualifies as a slump sale under the Income Tax Act, 1961, whether exemption from GST levy can be claimed on the same by the applicant? We have gone through the entire submission made by the applicant regarding the appli...

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No Slump Sale if price based on individual assets & liabilities

CIT Vs Shiva Distilleries Limited (Madras High Court) - The issue under consideration is whether ITAT was right in law in holding Section 50B i.e slump sale was not applicable in present case of assessee?...

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Rule 11UAE Computation of FMV of Capital Assets for Section 50B

Notification No. 68/2021-Income Tax [G.S.R. 338(E)] - (24/05/2021) - CBDT notifies Rule 11UAE Computation of Fair Market Value of Capital Assets for the purposes of section 50B of Income-tax Act, 1961 vide Notification No.68/2021 Dated 24th May, 2021. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi Notification No. 68/2021 –...

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Recent Posts in "Slump Sale"

Depreciation eligible on Goodwill acquired under slump sale agreement

AVIS Hospitals India Limited Vs ACIT (ITAT Hyderabad)

ITAT held that by acquiring business rights along with tangible assets, the assessee got an up and running business and the specified intangible assets acquired under slump sale agreement are in the nature of any other business or commercial rights of a similar nature on which depreciation is allowable....

Read More

Slump Sale and Its Taxation

SLUMP SALE AND ITS IMPLICATIONS A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. Tax Effect in Slump Sale The gain or loss resulting out of a slump sale shall be a Capital Gain/Loss under […]...

Read More
Posted Under: Income Tax |

Definition of term ‘slump sale’ amended to replace word ‘sales’ with ‘transfer’

Slump sale is defined in clause (42C) of section 2 of the Act, as the transfer of one or more undertaking, by any means, for a lump sum consideration without values being assigned to individual assets and liabilities in such sales. Vide the Finance Act, 2021, the definition of ‘slump sale’ was amended to expand […]...

Read More
Posted Under: Income Tax |

HC deletes disallowance on Account of Slump Sale following its decision for earlier year

PCIT Vs Akzo Noble India Limited (Calcutta High Court)

PCIT Vs Akzo Noble India Limited (Calcutta High Court) Issue– Whether on the facts and in the circumstances of the case the Learned ITAT, Kolkata has erred in law in deleting the disallowance of sum of Rs.3.50 Crores and Rs.2.11 Crores for the assessment year 2006-07 and 2007-08 respectively on account of slump sale of […]...

Read More

Slump sale: Provide relief from unintended adverse impact of Rule 11UAE

BCAS made a representation to CBDT and Requested for relief from unintended adverse impact of Rule 11UAE of the Income-tax Rules, 1962 for slump sale transactions. Text of the representation is as follows:- Bombay Chartered Accountants Society  Harnessing Talent and Providing Quality Service 7, Jolly Bhavan 2, Ground Floor, New Marine Li...

Read More
Posted Under: Income Tax |

Plugging loopholes within Section 50B governing Slump Sale Transactions

Plugging loopholes within Section 50B governing Slump Sale Transactions : Amendments by Finance Act, 2021 This presentation would aim to simply explain what a slump-sale is and proceed to explain the concept of a slump sale in a tax perspective due to several issues faced pertaining to the tax-computation mechanism of a slump sale and [&h...

Read More
Posted Under: Income Tax |

Whether Sum Received By Holding Company From Subsidiary Under Scheme Approved By High Court -Considered As Slump Sale

Whether Sum Received By Holding Company From Subsidiary Under Scheme Approved By High Court -Considered As Slump Sale Whether any sum received from a subsidiary company by a holding company under scheme of arrangement sanctioned by High Court under provisions of Section 391 to 394 of the Companies Act, 2013 , be treated as ‘Slump [&...

Read More
Posted Under: Income Tax |

Regular Vs. Slump Sale: Assessee cannot be allowed to take shifting stands

Emil Pharmaceutical Industries Private Limited Vs DCIT (ITAT Mumbai)

Emil Pharmaceutical Industries Private Limited Vs DCIT (ITAT Mumbai) In this case learned CIT(A) has noted that the assessee has not produced supporting documents such as the list of employees at the time of the sale, electricity bills and other details necessary to establish the existence of an undertaking in a continuous business. Furth...

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Rules for calculation of FMV of Capital Assets in case of Slump Salele

Section 50B read with Section 48 of the Act provides that capital gains on slump sale will be the difference between the full value of the consideration received/ accruing as a result of transfer of capital asset and the net worth of the undertaking sold....

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Posted Under: Income Tax |

Slump Sale | Rule 11UAE | Income Tax Rules, 1962

What is Slump Sale: ♦ A slump sale for income tax purposes would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. ♦ It may be important to note here that finding out individual values may be of relevance only for the purpose […]...

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Posted Under: Income Tax |

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