2026 (8) TMI 1026

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....n facts and in law, the learned CIT(A) erred in confirming 1 the addition of Rs. 14,26,898 made by the Assessing Officer under section 37(1) of the Income Tax Act, 1961. 2. The learned CIT(A) failed to appreciate that the impugned amount pertains to slump sale consideration offered to tax under 2 section 50B under the head Capital Gains, and therefore the provisions of section 37(1), which apply only to computation of business income under sections 28 to 44, are not applicable. 3. The learned CIT(A) erred in law in not adjudicating the specific legal ground raised by the Appellant regarding the inapplicability of section 37(1), thereby rendering the order bad in law and liable to be set aside. 4. The learned CIT(A....

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....its Animal Health Division to Sanofi Synthelabo (India) Pvt. Ltd. as a going concern by way of Slump sale for a sale consideration of Rs. 180 crores. The capital gain arising from sale of such Animal Health Division was computed and offered to tax under section 50B at Rs. 145.59 crores, which shown under the 'head capital gain'. The AO while passing the assessment order made addition of Rs. 14,26,898/- on account of difference between the amount reflected in the escrow bank account and the principal escrow payout communicated by the purchaser. The assessee reduced the said amount from slump sale consideration on the ground that it represented escrow adjustment / interest component which was not accrued as income to the assessee. The AO whil....