Provision of sec 50B is applicable only on the sale done on slum basis

Last updated: 11 May 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
“On the facts and in the circumstances of the case and in law the Learned CIT (A) erred in upholding the order passed by the learned Assessing Officer applying the provisions of section 50B of the Income tax Act to sale of assets of the M Seal Division of the Appellant. “On the facts and in the circumstances of the case and in law the Learned CIT (A) ought to have accepted the contention of the Appellant that the said sale was an itemized sale and not a slump sale and therefore provisions of section 50B were not applicable to the facts of the case. “The learned AO be directed to compute capital gains on such itemized sale of assets of M. Seal Division without applying the provisions of section 50B of the Act.”

Citation :
Mahindra Engineering & Chemical Products Ltd., Gateway Products Ltd, Gateway Building, Apollo Bunder, Mumbai -400 001 PAN: AAACM 5764A Appellant Vs. Income-tax Officer 2(2)(2), Aayakar Bhavan, 5th Floor, M.K. Road, Mumbai -400 020 Respondent