SLUMP SALE AND ITS TAXABILITY MEANING OF “SLUMP SALE” AND “UNDERTAKING” The scheme of taxation of a “slump sale” is provided under section 2(42C) r. w. section 50B of the Act. Section 2(42C) defines slump sale to mean a transfer of one or more undertakings for a lumpsum consideration without values being assigned to the individual assets and liabilities in such sales. The term “undertaking” is defined in Explanation 1 to clause (19AA) of section 2 of the Act. The Finance Act 2021, has amended the definition of “slump sale” to provide that all types of ‘transfer’ as defined under section 2(47) shall be included within the scope of slump sale. The effect of this amendment is that all types of slump transfers, including slump exchange, are now governed by section 50B of the Act. By virtue of this amendment the decision of the Bombay High Court in case of Bharat Bijilee Ltd 46 taxmann.com 257(Bom) got nullified. However, the conclusive words “in such sales” were inadvertently re...
Let's Grow Together
Comments
Post a Comment