In the case of acquisition of a business by way of slump sale, section 50C has no application in the hands of the purchaser. However, if the value of the land and building is lower than the stamp duty value, the provisions of section 56(2)(vii)(b) may apply after valuation by the DVO. The matter was restored to the Assessing Officer for fresh determination. (AYs. 2012-13 to 2014-15 & 2016-17.)
Akorn India (P.) Ltd. v. DCIT (2025) 238 TTJ 869 / 180 taxmann.com 249 (Delhi)(Trib.)
S. 50C: Capital gains-Full value of consideration-Stamp valuation-Income from Other Sources-Slump sale-Section 50C cannot be applied-If the value of the land and building is lower than the stamp duty value, the provisions of section 56(2)(vii)(b) may apply after valuation by the DVO. The matter was restored to the Assessing Officer for fresh determination.[S. 2(42C), 56(2)(vii)(b), 50B]
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