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2017 (2) TMI 912 - AT - Income TaxSlump sale - Addition of excess liabilities over assets of the division to sale consideration for the purpose of computation of long term capital gain on the sale of the division - computation of income - whether the Assessing Officer was right in adding the amount of liability reflected in the negative net worth to the sale consideration for determining the capital gain on account of slump sale? Held that:- The Revenue not only specifically challenged the finding of the Ld. Commissioner of Income Tax (Appeal) for ignoring the negative figure of net worth but also submissions were made on the issue. The Tribunal duly considered the decision the case of Ahmedabad Electricity Company Ltd. vs CIT (1992 (4) TMI 29 - BOMBAY High Court ) and CIT vs Mahalaxmi Textiles Mills Ltd. (1967 (5) TMI 4 - SUPREME Court) and then reached to a conclusion by holding that the Assessing Officer was right in adding the amount of liability reflected in the negative net worth of the assessee to sale consideration for determining the capital gain on account of slump sale. Respectfully following the order of the Special Bench and the factual matrix that neither any contrary decision nor the plea that the facts are different were brought to our notice by the assessee, therefore, the appeal of the assessee is dismissed.
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