Bharat Bijilee Ltd. Decision - Be Cautious Before Relying
Eighth Annual Conference on International Taxation - Theme: Cross Border Taxation, The Indian Opportunity July 18 & 19, 2014
6 Pages Posted: 31 Jul 2014
Date Written: July 18, 2014
Abstract
The recent decision given by the Bombay High Court in the case of Bharat Bijilee Ltd., has reiterated the principle that where the transfer of undertaking takes place in lieu of non-monetary assets e.g. shares and debentures etc., then in such a case the transaction will not qualify as 'slump sale' as defined under the Income Tax Act, 1961 (‘Act’) and accordingly not chargeable to tax under section 50B of the Act.
Keywords: Bharat Bijilee Ltd., slump sale, 50B
JEL Classification: K33, K34
Suggested Citation: Suggested Citation