slump sale of assets

Slump sale means transferof one or more undertakings as a result of the sale for a lumpsum consideration without values being assigned to individual assets and liabilities in such sale.

If the undertaking is owned and held by the assessee for more than 36 months,it is a long term capital asset otherwise it is a short term capital asset.

Cost of acquisition and cost of improvement will be net worth of the undertaking.

Indexation benefit is not available

Report of a C.A. indicating co putation of net worth of the undertaking is required to be attached along with the return of income

Hi Friends,

There is a financial service company which is engaged in 3 different business activities. Now the promoters intend to sell one of the business activity alongwith the assets and liabilities attached with that business activity as a bundle sale. The company has not maintained separate books of accounts for these activities till now and has huge accumulated business losses in all the 3 activities.

Now for the purpose of Income-tax above sale will be considered as a slump sale. The NAV of the business activity being sold is positive and due to sale consideration there will be long term capital gain on this transaction.

I have the following questions in mind:
1.    To effect this sale does the company required to create separate books of accounts for different activities for earlier years.
2.    How does the accumulated losses will be carried forward post this sale (considering most of the losses are related to the activity being sold).
3.    Does the company need some kind of approval for this transaction?

Need your expert views and advise in this matter