Income-tax (21st Amendment) Rules, 1999 - S.O. 499(E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (Central Board of Direct Taxes) NOTIFICATION NO. 10967 New Delhi, the 25 th June, 1999 INCOME-TAX S.O. 499(E).- In exercise of the powers conferred by section 295 , read with section (3) of section 50B , of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further, to amend the Income tax Rules, 1962 , namely:- 1. (1) These rules may be called the Income-tax (21 st Amendment) Rules, 1999 (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 , after rule 6G, the following shall be inserted namely:- CCCC. Report in the case of slump sale. 6H. Form of report of an accountant under sub-section (3) of section 50B . report of an accountant which is required to be furnished by every asses along with the return of income, in case of slump sale, under sub-section (3) section 50B shall be in Form No. 3CEA . 3 In Appendix II to the Income-tax Rules, 1962 , after FORM NO 3CE , the following Form shall be inserted, namely:- FORM NO. 3CEA [see rule 6H] Report of an accountant to be furnished by an assessee under sub-section of section 50B of the Income-tax Act, 1961 relating to computation of capital gains in case of slump sale. *** 1. Particulars of the assessee effecting the slump sale: (a) Name ___________ (b) Address ___________ (c) Permanent account number ___________ (d) Nature of business ___________ 2. Details of the undertaking or division, transferred by way of slump sale: (a) Address/Location ___________ (b) Nature of business ___________ 3. (a) Book value of the fixed assets of the assesse effecting the slump sale _____________ (b) Book value of the fixed assets of the undertaking or division, transferred by way of slump sale ___________ (c) Ratio of(b)to(a) ____________ (d) Where the assessee has more than one undertaking or division, being transferred by way of slump sale, the ratio as computed in item 3(c) above in respect of each undertaking or division. ___________ 4. Name, address and permanent account number of the person who has purchased the undertaking or division referred to in item 2. ___________ 5. Date of slump sale of the undertaking or division referred to in item 2. ____________ 6. Amount of consideration received for slump sale referred to in item 2. ___________ 7. Net worth of the assessee effecting the slump sale: (a) Paid up capital Rs. ___________ (b) Free reserves credited out of the profits and share premium account but does not include reserves credited out of revaluation of assets, write back of depreciation provisions and amalgamation: (i) Rs. ___________ (ii) Rs. ___________ (iii) Rs. ___________ (iv) Rs. ___________ (c) Total Rs. ___________ 8. Indicate the computation of the net worth of the undertaking or division referred to in item 2 which is transferred by way of slump sale. (Net worth of the undertaking or division should be computed keeping in view of the ratio mentioned in item 3(c) above. Please attach separate sheet, if _ _ _ _ _ _ _ _ _ necessary) Signed 2 Accountant Certification *I/We ---------------------- -------------------- ---------------------------- have examined the accounts and records of (Name) ---------------------- ------------------------ during the year ended on ---------------------- ---------------- ------------------ (Name and Address of assessee) *I/We have obtained all the information and explanations which to the best of *my/our knowledge and belief were necessary for the purpose of ascertaining and computing the net worth of the undertaking or division which has been transferred by way of slump sale. *I/we certify that the net worth of the undertaking or division has been computed correctly in accordance with the provisions of section 50B of the Income-tax Act, 1961. ------------------------ Signed 2 Accountant Place -------------------------------- Date -------------------------- Notes: 1. Delete whichever is not applicable. 2. Accountant means the accountant as defined in Explanation below subsection (2) of section 288 of the Income-tax Act. 3. The net worth in item 7 should be computed in accordance with the clause (ga) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985(1 of 1986). 4. Please indicate details of free reserves separately in item 7(b). 5. This form shall be filed along with return of income duly accompanied by copies of the profit and loss account and balance sheet or audited profit and loss account and balance sheet in accordance with the provisions of section 139 of the Income-tax Act, 1961. 6. Indicate separately the computation of net worth of each undertaking or division transferred by way of slump sale. [F. No. 142/10/99-TPL] D. KARUNAKARA RAO, Under Secy.