Section 47(xiv) if income tax act

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2011 my sole prop firm is taken over by pvt ltd company on 01-04-2008
purchase consediration is fixed 1.05 crore
cpmpany alloted 1 crore share and blance 5 lacs as unsecured loan
Ao said all the share are not alloted so he does not want to gives exemption u/s 47(xiv)
he want to treat as a slum sale under sec 50B
guide how to proceed

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 December 2011 The manner in which the AO can deal the issue arising out of breach of prescribed conditions ,has been prescribed U/s 47A(3). AO can not go beyond that.
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He can not treat it as slump sale and further can not initiate Section 50B if you furnish the copy of agreement showing valuation of Assets and liabilities individually and show that the Net Consideration is 1.05 Crore.

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