INCOME TAX ACT, 1961

Section 2(42C) Section 50B

Capital gains - Slump sale - Sale of business undertaking as a going concern - Assessee pleading sale as transfer of depreciable assets

Assessee engaged in process of frozen foods sold two of its units. According to AO, sale of these two units was in the nature of slump sales and income arising out of these had to be computed as profit under section 50B. Assessee submitted that what was sold were depreciable assets and provisions of section 50B were not applicable and the value was clearly bifurcated as attributable to immovable and movable property. Held: Since industrial unit was sold as a whole and as a continuing business concern with land, building, plant, machinery and all equipments as a going business with assets and liabilities for a consolidated sum, the same squarely attracted definition of 'undertaking' covered by Explanation 1 to section 2(42C) and computation of capital gains under section 50B by AO was correct.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2002-03

INCOME TAX ACT, 1961

Section 43B

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