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TMI Blog2017 (6) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of negative net woth of Rs.(-) 10,00,54,507/- to the long term capital gain without appreciating the fact that on the similar issue the Special Bench of the Mumbai Tribunal in the case of DCIT Vs. Sumit Securities Ltd ha~ decided this issue in favour of Revenue." 3. "On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition on contingent interest liability of Rs. 2,62,20,586/- while calculating the net worth of the assessee company without appreciating the fact that this liability need to be considered for arriving at the correct net worth." 4. "On the facts and circumstances of the case and in law, the Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in those cases where the negative net worth of an undertaking transferred on slump sale basis, is on account of excess of liabilities of the undertaking over its assets transferred to the transferee party. The dispute before the Special Bench is not in respect of those cases, where the negative net worth is on account of accumulated losses in the undertaking. In the case of accumulated losses in an undertaking, no extra benefit, over and above the sale consideration, would be derived by the transferor on account of the slump sale of the undertaking. It is only in those cases, where the transferee party takes over all the liabilities and assets in a case of slump sal1 and the liabilities are in excess of assets that the transferor is going t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not going to get any benefit over and above the sale consideration in this case. In such a case, therefore, in terms of section 50B, the cost for the purpose of computation of capital gain could not be a negative figure. Hence, in my view the appellant has rightly adopted the net worth (or the cost) of the undertaking as nil for the purposes of section 50B of the Act. Furthermore, the issue can also be looked into from the point of view of the purchaser. If the negative net worth is also considered to be the par of sale consideration, then the total gain to the seller would be adopted as the cost in1the hands of the purchaser. Therefore, when the purchaser sells the undertaking to a third party, his gain shall accordingly be lower. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee submitted that there was a mistake on the part of the assessee in the submissions made before the Assessing Officer. Learned Counsel fairly submitted that in view of the revised computations and submissions, the issue needs to go back to the Assessing Officer to decide the issue in view of the revised computations and submissions. 7. Since the issue has been decided in favour of the assessee by the learned CIT(A) and learned Counsel of the assessee is fairly agreeing before us that there has been a mistake on the part of the assessee in submitting the computations before the Assessing Officer, interest of justice requires that all the issues raised in this appeal need to be remitted to the file of the Assessing Officer. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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