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2015 (9) TMI 799 - AT - Income TaxSlump sale - CIT confirming addition of negative net worth of the undertaking transferred under the slump sale to the long term capital gain u/s 50B - Held that:- As decided in V Summit securities Limited case [2012 (3) TMI 176 - ITAT MUMBAI] the Assessing Officer was not right in adding the amount of liabilities being reflected in the negative net worth ascertained by the auditors of the assessee to the sale consideration for determining the capital gains on account of slump sale. However, we allow ground no.2 raised by the Revenue in its appeal by holding that the CIT(A) was not correct in coming to the conclusion that the negative figure of the net worth should be ignored for working out the capital gains in case of a slump sale. The summary of our conclusion is that the amount of ‘Net worth’ will be a negative figure and not Zero. - Decided against assessee. Disallowance of deduction from the profits arising out of the sale of undertaking by way of slump sale while working out the income under the head profits and gains from business - Held that:- The computation of Total income filed by Assessee shows that assessee had starred the computation of business income from (-) ₹ 4,62,67,764/- as per profit and loss account and without increasing it further by the amount of any profit arising on the sale of the business undertaking which is chargeable to tax under the head capital gains and not under the head of profit and gains of the business and profession. It had credited extra-ordinary item in the profit and loss account of ₹ 2,55,74,116/-. As per note no B (6) of schedule 12 of the balance sheet at serial no item no 10 shows profit on sale of non-woven fabrics business under slump sale an amount of ₹ 2,03,46,191/- is shown. In our opinion, said amount has be adjusted in the computation of income and the claim made by the assessee is justified. In the matter of Prithvi Brokers the Hon’ble Bombay High Court [2012 (7) TMI 158 - BOMBAY HIGH COURT] has held that the appellate authorities can admit new claim made before them,though the AO cannot admit such claim without filing of fresh return. We are of the opinion,that in the interest of justice, the matter should be restored back to the file of the FAA for fresh adjudication,who will decide the issue after affording a reasonable opportunity of hearing to the assessee. - Decided partly in favour of assessee. Disallowance of sales tax deferral scheme - assessee had contended that an amount pertaining to sales tax deferred scheme and same is not disallowable u/s 43B of the Act in view of the circular no 496 dated 25.09.1987 - Held that:- It is found that the assessee had also not submitted before AO the details of such claim. Further before FAA details of claims,reconciliation and how it is covered by the circular no 496 dated 25.09.1987were not submitted. Therefore such claim requires verification and also ascertainment whether the conditions and requirements mentioned under circular no 496 is met by the assessee or not. Therefore, in the interest of justice,this ground of appeal is set aside to the file of AO with direction to verify the claim of the assessee in accordance with circular no 496 dated 25.09.1987 and decide the issue in accordance with law after providing proper opportunity to the assessee - Decided in favour of assessee for statistical purposes.
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