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2023 (11) TMI 134 - KARNATAKA HIGH COURTNature on sale - Slump Sale - capital gain u/s 50B - Transfer of asset or not? - assessee submitted that and and buildings were not transferred under the Agreement and only individual assets were transferred but the ownership was retained by assessee. Therefore, it is not as ‘slump sale’ as per Section 2(42C) and capital gains cannot be computed under Section 50B of the Act holding that it is a long-term slump sale - HELD THAT:- As per Clause 2.1(i) of the Business Agreement it is clear that assessee has transferred the ‘right to use the immovable properties’. Assessee has not transferred the ‘whole’ undertaking which is one of the essential conditions under Section 2(42C) of the Act. Therefore, the transfer cannot be considered as a ‘slump sale’. Section 50B of the Act provides a mechanism for assessment of capital gain on ‘transfer’ of an ‘undertaking’ in a ‘slump sale’. Admittedly, immovable assets of the assessee’s business were not transferred. Therefore, it does not satisfy the essential conditions under Section 2(42C) of the Act. Decided in favour of assessee.
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