2023 (11) TMI 134

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....T [Income Tax Appellate Tribunal] has been admitted to consider the following question of law: "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessee has rightly transferred the hospital as a going concern and took net worth as 'nil' and, as such, the same is not a "Slump Sale" without appreciating that assets that were necessary for effective continuation of Hospital business were transferred in one go, individual assets / liabilities were not assigned any value and agreement itself mentions it as "Slump Sale"? 2. Heard Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue and Shri. R.V. Easwar, learned Senior Advocate for the Assessee. 3. Briefly....

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....e'. 5. Shri. Easwar, for the assessee, supporting the ITAT's order, submitted that land and buildings were not transferred under the Agreement. Only individual assets were transferred but the ownership was retained by assessee. Therefore, it is not as 'slump sale' as per Section 2(42C) of the Act and capital gains cannot be computed under Section 50B of the Act holding that it is a long-term slump sale. With the above submissions, Shri. Easwar prayed for dismissal of this appeal. 6. We have carefully heard the rival contentions and perused the records. 7. Undisputed facts of the case are, assessee had entered into a business agreement dated 20.08.2010 with MHEPL and had transferred its business by way of 'slump sale'. While computi....