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TMI Blog2023 (11) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. - HON BLE MR. JUSTICE P.S. DINESH KUMAR AND HON BLE MR. JUSTICE T.G. SHIVASHANKARE GOWDA For The Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar] 2011-12 declaring a loss of Rs. 12,85,55,955/-. The AO [Assessing Officer] disallowed Rs. 66,46,75,195/- as long-term capital gain on the slump sale under Section 50B of the Income Tax Act, 1961. On appeal, the CIT(A) [Commissioner of Income Tax (Appeals)] confirmed the disallowance. On further, the ITAT [Income Tax Appellate Tribunal] has allowed assessee's appeal holding that the lump sum sale cannot be computed as capital gain under Section 50B of the Act. Hence, this appeal by the Revenue. 4. Shri. Sanmathi, for the Revenue, praying to allow the appeal, submitted that: assessee has taken a new contention that the transfer was not a slump sale, which is contrary to the stand before the CIT(A) and the ITAT; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales 9. Clause 2.1(i) of the Business Agreement reads as follows: (i) The Seller agrees to sell, transfer, assure, grant, release, assign and convey to the Buyer and the Buyer, subject to the terms hereof and in consideration of the representations, warranties, covenants and statements of the Seller as contained herein, agrees to acquire and purchase, on a slump sale (as defined under section 2 (42C) of the Income Tax Act, 1961) basis, the Hospital Business, on a going concern basis on the Closing Date in accordance with, subject to and upon the fulfi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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