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Income Tax - Highlights / Catch Notes

Home Highlights December 2024 Year 2024 This

The Income Tax Appellate Tribunal allowed the assessee's claim ...


Tribunal allows deduction for new owner after slump sale; upholds tax benefits for existing undertaking.

December 18, 2024

Case Laws     Income Tax     AT

The Income Tax Appellate Tribunal allowed the assessee's claim for deduction u/s 80IA(4)(iv) of the Income Tax Act. The Tribunal held that the mere change of ownership of an existing undertaking through a slump sale would not disentitle the undertaking from the benefits u/s 80IA. The conditions prescribed u/s 80IA(3)(iii) regarding formation of an undertaking by splitting up or reconstruction of an existing business, or transfer of plant and machinery already used to a new business, were not applicable in this case. As the undertaking remained intact without any change in the plant and machinery or business, the mere change of ownership could not be a ground to deny the deduction u/s 80IA(4).

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