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2013 (10) TMI 511 - AT - Income TaxComputation of short term capital gains - Valuation u/s 50B - Slump sale - Reduction of secured loans from total assets - Held that:- The Assessing Officer has taken the consideration value of Rs.25 crores by making an adjustment of current liabilities and current assets. The sale consideration has been specifically mentioned in the business acquisition agreement vide article 8.1. at page 61 of paper book which is at Rs.21,90,18,640/-. The Ld CIT(A) has taken this value as sale consideration and we are of the opinion that this is the correct value which should be considered for the purpose of calculation of capital gain. The Ld CIT(A) has not reduced the amount of secured loans from the amounts of total assets to arrive at the net worth of undertaking which is not a correct position as per provisions of section 50B of the Act - Section 50B is a special provision which is applicable in the case involving slump sale and which prescribes a particular method to calculate the capital gain earned by the assessee. Section also prescribes the method of calculating net worth of the undertaking - Following decision of Gopee Nath Paul And Sons And Another Versus Deputy Commissioner Of Income-Tax [2005 (3) TMI 73 - CALCUTTA High Court] - Decided in favour of Revenue.
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