ASSTT. COMMISSIONER OF INCOME TAX-CENTRAL CIRCLE5(4), MUMBAI vs. M/S. LARSEN & TOUBRO LIMITED ( FORMERLY KNOWN AS L & T SHIPBUILDING LIMITED ), MUMBAI

ITA 2350/MUM/2023Status: DisposedITAT Mumbai20 March 2024AY 2016-2017Bench: SHRI KULDIP SINGH (Judicial Member), MS. PADMAVATHY S (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the expenditure incurred for differential lease rental premium, stamp duty, and registration charges were directly connected to the transfer of the port undertaking as part of a slump sale. Therefore, these expenses were allowable deductions in computing the capital gains arising from the transfer.

What were the facts?

The assessee company claimed an additional expenditure of Rs. 82,59,94,515/- related to a slump sale of its port division. This expenditure was for differential lease rental premium and associated charges, which the assessee argued were necessary for the transfer. The Assessing Officer declined the claim, and the CIT(A) partly allowed it.

What were the issues?

Whether expenses incurred for differential lease rental premium and associated charges are allowable deductions in computing capital gains on a slump sale, and if such expenses crystallizing after the return filing date can be allowed in the year of transfer.

Which sections of the Income-tax Act were involved?

Section 48,Section 50B

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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

Before: SHRI KULDIP SINGH & MS. PADMAVATHY S

For Appellant: Shri Nitesh Joshi, A.R. &, Shri Nayan Thakkar, A.R
For Respondent: Shri Ajay Chandra, D.R

Per Bench:

The appellant, M/s. Larsen & Tou

The order continues below.

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