The High Court held that where the assessee transferred its business undertaking on a slump sale basis as a going concern for monetary consideration, the resultant gain was correctly computed as long-term capital gain under section 50B. The Assessing Officer’s attempt to tax it as business income under section 28(iv) was held to be incorrect, as that provision does not apply where consideration is received in money. (AY. 2013-14)
PCIT v. Natroyal Industries (P.) Ltd. [2024] 159 taxmann.com 448 (Bom.) (HC)
S. 50B : Capital gains-Slump sale-Gain from transfer of an undertaking as a going concern is assessable as capital gain and not as business income. [S. 28(i), 28(iv) 45, 260A]
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