TaxTMI 
TaxTMI 
2021 (1) TMI 1284
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....ed in the business of media and entertainment, filed its e-return of income for the AY.2015-16 on 30-11-2015, admitting total income at Rs.17,48,25,240/-. The return of income was initially processed u/s.143(1) of the Income Tax Act [Act]. Pursuant to selection for scrutiny under CASS, the same was taken up for scrutiny u/s.143(3) of the Act. In response to the notices u/s.143(2) and 142(1) of the Act, the Authorised Representative of the assessee appeared from time to time and furnished the information called-for. 2.1. The AO observed that in the return of income, the assessee had admitted Short Term Capital Loss of Rs.3,64,38,969/- on slump sale of its undertaking i.e., Luxe Cinemas. When the assessee was asked to explain as to how the....
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....sessee explained that the total sale consideration agreed between the parties was Rs.51.50 Crores and the assessee was supposed to clear the debt before handing over the assets to the purchaser and instead of paying the total amount to the assessee, the buyer has paid the loan amount directly to the bank and the balance of Rs.30 Lakhs only was paid to the assessee. Therefore, he submitted that the Short Term Capital Loss incurred by the assessee was Rs.3,64,38,969/-. 2.3. The AO, however, did not accept the assessee's contentions and held that the 'net worth' includes all the assets and liabilities of the undertaking as on the date of sale and therefore, the net worth should be reduced by the sum of Rs.21,50,00,000/- and by doing so, the....
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....consideration received by the buyer and hence need to be reduced from the consideration. 5. The learned CIT as erred in setting aside the Form 3CEA certifying the net worth of the undertaking. 6. The learned CIT has erred in levying excess interest under section 234C of the Act amounting to INR 2,46,609 as against an amount-of INR 1,68,843 claimed by the Assessee in its revised return dated 15 December 2016. 7. The learned CIT has erred in levying excess interest under section 234B amounting to INR 1,62,51,576 and interest on refund issued under section234D amounting to 2,18,297 of the Act. The Appellant craves leave to add, supplement, amend, delete or otherwise modify any of the grounds stated hereinabo....
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.... the rival contentions and the material on record, the un-disputed facts are that the assessee has sold its asset (Luxe Cinemas) by way of slump sale to Jazz Cinemas Pvt. Ltd., and Clause-3 of the said slump sale deed clearly mentions that the total sale consideration that is agreed to was Rs.51.50 Crores and that out of the same the buyer would pay a sum of Rs.21.50 Crores directly to the creditor i.e., SBI, and only the balance of Rs.30 Crores would be paid to the assessee. Therefore, the AO in para 5(b) of his order has rightly observed that the assessee has applied the sale consideration for making the payment to the creditor i.e., the bank. After observing so, AO has treated the liability of Rs.21.50 Crores as subsisting liability at t....