Slump sale
This query is : Resolved
10 May 2014
if sales consideration is rs.100000 and net worth is -150000 then what is capital gain ???
CA Mohit Bansal
(Expert)
10 May 2014
Kindly mention all the details
10 May 2014
witout cost of acq, year of acq, imp dates of purchase and sell no 1 can reply correctly.
Nikhil Kaushik
(Expert)
10 May 2014
I believe your doubt is whether or not the negative networth is to be included in arriving at the capital gains.
Thats a normal confusion - whether capital gains is Rs 1 lakhs or Rs 2.5 lakhs.
In case of M/s Summit Securities Limited, Mumbai ITAT held that negative net worth is to be considered and accordingly the gains shall be Rs 2.5 lakhs.
Please refer https://www.moneycontrol.com/news_html_files/news_attachment/2012/Tax%20Edge%20Special%20_BMR%20Advisors.pdf
My disclaimer is that I have not followed the cases subsequent to Sumit Securities case and any subsequent judgment in favor of assessee is not available to me.
Thats a normal confusion - whether capital gains is Rs 1 lakhs or Rs 2.5 lakhs.
In case of M/s Summit Securities Limited, Mumbai ITAT held that negative net worth is to be considered and accordingly the gains shall be Rs 2.5 lakhs.
Please refer https://www.moneycontrol.com/news_html_files/news_attachment/2012/Tax%20Edge%20Special%20_BMR%20Advisors.pdf
My disclaimer is that I have not followed the cases subsequent to Sumit Securities case and any subsequent judgment in favor of assessee is not available to me.
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