https://www.taxtmi.com/caselaws?id=775605 The ITAT Hyderabad held that profits from a slump sale of a business unit, including land classified as a long-term capital asset, qualify for deduction under Section 54EC. The tribunal disagreed with the Pr. CIT's view that the entire business undertaking should be treated as a single asset excluding individual assets for Section 54EC purposes. Since the sale included land with a specified book value, the assessee was entitled to claim deduction under Section 54EC against the capital gains attributable to that land. The ITAT restored the AO's order allowing the deduction of Rs. 50 lakhs and set aside the Pr. CIT's order which had disallowed the claim, affirming that the deduction was rightly claimed and the AO's assessment was valid. en-us Fri, 04 Jul 2025 00:00:00 +0530 Mon, 28 Jul 2025 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775605 The ITAT Hyderabad held that profits from a slump sale of a business unit, including land classified as a long-term capital asset, qualify for deduction under Section 54EC. The tribunal disagreed with the Pr. CIT's view that the entire business undertaking should be treated as a single asset excluding individual assets for Section 54EC purposes. Since the sale included land with a specified book value, the assessee was entitled to claim deduction under Section 54EC against the capital gains attributable to that land. The ITAT restored the AO's order allowing the deduction of Rs. 50 lakhs and set aside the Pr. CIT's order which had disallowed the claim, affirming that the deduction was rightly claimed and the AO's assessment was valid. Case-Laws Income Tax Fri, 04 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775605