Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 418 - AT - Income TaxLTCG - As per CIT-A there was a slump sale within the meaning of section 2(42C) attracting the provisions of section 50B - HELD THAT:- We find that as per the agreement, the price consideration for the undertaking and assets to be bought and sold (business) is ₹ 14,00,00,000/- as set out in the schedule attached as annexure “A” quoted supra. Therefore, the case in hand is squarely covered by the judgment of the Hon’ble Supreme Court in the case of Vatsala Shenoy[2017 (2) TMI 865 - SC ORDER] As per the definition of section 2(42C), sale in question could be treated as slump sale only if there was no value assigned to the individual assets and liabilities in such sale. This has obviously not happened. It is stated that at the cost of repetition the value was assigned to individual assets, as per Annexure A, which is placed and liabilities were taken over by the purchaser. Considering the facts of the present case, it is held that the sale in question is not slump sale, obviously, section 50B also does not get attracted as this section contains special provision for computation of capital gains in case of slump sale. Respectfully following the above judgement of the Hon’ble Supreme Court, we set aside the order of the CIT(A) and direct the AO to delete the addition made by the AO treating the same as long term capital gains - Decided in favour of assessee. Disallowance of expenditure - AO found that the assessee could not furnish bills and vouchers towards administrative and selling expenses claimed in the return of income filed - HELD THAT:- As revenue authorities have made the disallowance on the ground that the AR of the assessee agreed for the same during the course of assessment proceedings. Whereas, the AR of the assessee submitted that the assessee has not authorized its AR for agreed addition. In view of the contrary submissions, we remit this issue to the file of the AO with a direction to redecide the issue after examining the material put-forth by the assessee before him in accordance with law after providing reasonable opportunity of hearing to the assessee in the matter. The assessee is directed to substantiate its claim by way of documentary evidence at his own risk and responsibilities with three effective opportunities of hearing. Therefore, the ground raised by the assessee on this issue is allowed for statistical purposes.
|