Capital gain on sale of assets acquired in a slump sale.

Dear All,

A Company acquired certain assets (mainly old plant and machinery) along with a long term lease of land by paying a single consideration. Thereafter the company dismantled and sold the old plant and machinery and there by the block ceased to exist. Meanwhile the company acquired few items of small machinery which are of entirely different nature.

Is the Company liable to pay tax due to Capital Gain?

If yes, then what will be the cost of acquisition of this old plant and machinery purchased along with the lease of land under a single consideration.


Thanks & Regards.

Replies (1)

The company shall be liable to capital gain tax. The value of plant and machinery has to be seprated from the total consideration paid for the plant and machinery and land. the value has to be deducted from opening value + additions during the year and charged to short term capital gain tax....

Since the company aquired certains items which are entirely different but are in the nature of plant and machinery and applicable to same rate of tax as the previous block then the purchase price has to be included in the additions during the year

Regards,

Ronak Agrwal

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
ARTICLESHIP 17 July 2026
Article Assistant and B.com pass

BANSAL YOGESH AND CO

Gautam Budh Nagar

B.Com

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details