Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 419 - HC - Income TaxNature of transaction - slump sale or transfer of shares - transfer of entire shareholding in its subsidiary UHEL to a third party - Held that:- transfer of shares in a company will not result in a transfer of an undertaking or part of the undertaking to make it a slump sale. - Tribunal has invoked the correct principle of law to draw a distinction between transfer of shares and transfer of undertaking. In the present facts, what has been transferred are mere shares of the respondent in UHEL. There has been no transfer of an undertaking of UHEL. The undertaking continues to be vested in UHEL. Only there has been change in pattern of its share holdings which would not make it slump sale. This position is evident from the statutory definition of slump sale and the term 'undertaking' as defined in the Act read with the binding decision of the Apex Court in [2012 (1) TMI 52 - SUPREME COURT OF INDIA] and [1954 (10) TMI 2 - SUPREME COURT] - Decided against the revenue.
|