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2022 (2) TMI 1335 - ITAT BANGALOREShort term capital gain - Slump sale - negative net worth - Assessee considered the net worth at zero on slump sale - computation of capital gains where the net worth of an assessee is negative - Whether DCIT and CIT(A) erred in computing the short term capital gain by adding the negative net-worth instead of restricting the same to NIL as deeded cost, since cost cannot be a negative value - appellant had transferred the pharma undertaking for a consideration of Rs.100 in view of the negative net-worth and capital gain on such transfer can never be more than Rs.100 - HELD THAT:- As decided in M/S. SUMMIT SECURITIES LIMITED [2012 (3) TMI 176 - ITAT MUMBAI] held that that the Assessing Officer was not right in adding the amount of liabilities being reflected in the negative net worth to the sale consideration for determining the capital gains on account of slump sale. The Hon’ble Special Bench however agreed with the contention of the Revenue that the negative net worth cannot be ignored for working out the capital gains in case of a Slump Sale. Thus, we hold that negative net worth cannot be ignored for computing capital gain on slump sale. We thus, direct the Ld.AO to compute the capital gains in accordance with the principles laid down by Hon’ble Special Bench in case of M/s. Summit Securities Ltd. (supra). Appeal filed by assessee stands dismissed.
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