TaxTMI 
TaxTMI 
2026 (4) TMI 1172
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....sed by The Commissioner of Income Tax (Appeals) - 15 Bangalore [The ld. CIT(A)] dated 24 July 2025 wherein the appeal filed by the assessee against the assessment order passed under section 143(3) of The Income Tax Act (The Act) dated 30 December 2022 assessing the total loss of the assessee at Rs. 232,161,791/-, was partly allowed. 2. The learned AO is aggrieved with the same and has raised following grounds of appeal: -. i. Whether the learned CIT(A) order in deleting the addition of Rs. 902 lakhs made in the assessment order in not appreciating the fact that the assessee failed to substantiate the claim of expenses with proper evidence. ii. Whether the learned CIT(A) order in not appreciating the fact that slump sale....
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....nd financials. Assessee submitted the details of expenses and submitted that all the expenses claimed by the assessee are vouched and properly supported by the necessary evidence. The learned assessing officer noted that slump sale consideration is arrived at using valuation report. Therefore, the financial statements provided to the valuer are expected to be precise and accurate. Thus, the explanation of the assessee is not satisfactory and therefore the loss is allowed only on proportionate basis at Rs. 4 crores till January 2021. Thus, the learned assessing officer disallowed excess loss claimed from discontinued operation of Rs. 902 lakhs. Consequently, assessment order was passed on 30 December 2022 under section 143(3) of the Act dete....
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....sessee has disclosed the complete amount of impact on the financial statement of discontinued business of assessee. He therefore submitted that the assessee has sold business and none of the expenses are unvouched or unsupported. He further stated that assessee has disclosed the gain from the sale of subsidiary and business segment of Rs. 140.82 crores which has been recognised separately and part of discontinued operation in the statement of profit and loss account. Thus, according to him there is no infirmity in the order of the learned CIT(A) in deleting the addition of Rs. 9.02 crores. 8. The learned departmental representative in rejoinder referred to the auditor's report and stated that though there is a profit of Rs. 140 crore....
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.... parties. At the end of the five years, any optionally convertible debenture and accumulated interest that have not been redeemed will automatically converted to equity shares of that company at higher of Rs. 10 per share is all the fair market value of Unext at that time of conversion. 10. On this transaction, assessee has earned again the sale of subsidiary and business segment of Rs. 140.82 crores which has been recognised separately as part of discontinued operation in the statement of profit and loss. The comparative statement of profit and loss has also been presented to show that the discontinued operation separately from continuing operations. The assessee has also shown the result of discontinued operation wherein the revenue of....
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....vision of bifurcation financial results of continuing and discontinuing operation is made, so that stakeholder can understand the impact of the transaction of discontinuing cooperation of the financial affairs of the company. The learned CIT(A) found that that there is no reason given by the learned assessing officer on the veracity or genuineness of the expenses claimed for discontinued business unit and did not give any reason as to why the loss figure shown in the audited financial statement should not be accepted in absence of any other adverse material. 11. In the annual accounts of the assessee at paragraph No. 43, this transaction is disclosed as under: - 43. Discontinued operations i) The Company entered into an....
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....e end of each reporting period. The gain arising from the sale of subsidiary and business segment of Rs. 140.82 crores has been recognized separately as a part of Discontinued operations in the statement of profit and loss. The comparative statement of profit and loss has been re-presented to show the discontinued operation separately from continuing operations. ii) During the year, effective September 30, 2020, the Company sold its investment in Manipal Training Services Private Limited for a purchase & Consideration of Rs. 4.21 crores and gain arising from the sale of subsidiary of Rs 1.64 crores has been recognized separately as a part of "Discontinued operations' in the statement of profit and loss. a. Res....