Section 50B of the Income Tax Act

Income-tax Act, 2025: s.77

Section 50B of the Income-tax Act, 1961 corresponds to section 77 (Special provision for computation of capital gains in case of slump sale) of the Income-tax Act, 2025.

Read section 77 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 50B is CIT v. Artex Manufacturing Co. (227 ITR 260), cited in 36 of the 148 judgments on BharatTax that turn on this section.

Leading authorities on Section 50B

CIT v. Artex Manufacturing Co.
227 ITR 260 · 1997 · Supreme Court
36
citing judgments

In a slump sale, the slump purchase price cannot be apportioned among individual assets for claiming depreciation, as there is no indication of the price attributable to specific assets out of the total sale consideration.

CIT v. Mugneeram Bangur & Corn. (Land Department)
57 ITR 299 · 1965 · Supreme Court
21
citing judgments

In a slump sale of a business undertaking, the slump purchase price cannot be apportioned amongst individual assets for the purpose of claiming depreciation if no item-wise value was assigned in the purchase agreement.

TUV India (P.) Ltd. v. DCIT
110 Taxmann.com 175 · 2019 · ITAT
19
citing judgments

Addition should not be made when tax authorities fail to conduct inquiries with TDS deductors regarding discrepancies between Form 26AS and books of account, despite having the information and opportunity. Disallowance of expenses is arbitrary and against the rule of law if made without rejecting books of account or identifying specific discrepancies.

Ld. PCIT v. Vedanta Limited
102 Taxmann.com 95 · 2019 · High Court
14
citing judgments

The Assessing Officer must record dissatisfaction regarding the correctness of the assessee's claim for expenditure to earn exempt income before invoking Rule 8D for disallowance under Section 14A of the Income Tax Act.

M/s. EDAC Engineering Limited v. DCIT
141 ITD 231 · ITAT
9
citing judgments

Judgments on Section 50B

Ashok Leyland Limited, Chennai vs. ACIT, Chennai

ITA 2330/CHNY/2019[2015-16]Status: DisposedITAT Chennai07 Jul 2025AY 2015-16

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.2330/Chny/2019 निर्धारण वर्ष/Assessment Year: 2015-16 M/S. Ashok Leyland Ltd., 1, Sardar Patel Road, Guindy, Chennai-600 032. [Pan: Aaaca 4651 L] (अपीलार्थी/Appellant) V. The Acit, Large Taxpayer Unit-2, Chennai. (प्रत्यर्थी/Respondent) आयकर अपील सं./Ita No.2618/Chny/2019 निर्धारण वर्ष/Assessment Year: 2015-16 The Acit, Large Taxpayer Unit-2, Chennai. V. M/S. Ashok Leyland Ltd., 1, Sardar Patel Road, Guindy, Chennai-600 032. [Pan: Aaaca 4651 L] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee By : Mr.R. Vijayaraghavan, Adv. & Mr.Vikram Vijayaraghavan, Adv. Department By : Mr.A. Sasikumar, Cit सुनवाईकीतारीख/Date Of Hearing : 02.05.2025 घोषणाकीतारीख /Date Of Pronouncement : 07.07.2025

For Appellant: Mr.R. Vijayaraghavan, AdvFor Respondent: Mr.A. Sasikumar, CIT
Section 115JSection 143(3)Section 14A

Netmatrix Crop Care Private Limited, Hyderabad vs. DCIT., Circle-5(1), Hyderabad

ITA 599/HYD/2025[2020-2021]Status: DisposedITAT Hyderabad04 Jul 2025AY 2020-2021

Bench: Us:

For Appellant: Shri Jaydeep, C.AFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(1)(a)Section 143(3)Section 263Section 50BSection 54E

Digital Insight India Products Private Limited, Mumbai vs. ACIT Circle 6(2)(2), Mumbai

ITA 5048/MUM/2024[AY 2017-18]Status: DisposedITAT Mumbai29 Apr 2025
Section 143(3)Section 2Section 234BSection 234CSection 250Section 253(1)(a)Section 44ASection 50BSection 50B(3)

Asstt. Commissioner of Income Tax, Aaykar Bhawan, Mumbai vs. Digital Insight India Products P. Ltd., Mumbai

ITA 5036/MUM/2024[2017-18]Status: DisposedITAT Mumbai29 Apr 2025AY 2017-18
Section 143(3)Section 2Section 234BSection 234CSection 250Section 253(1)(a)Section 44ASection 50BSection 50B(3)

L & T Technologies Services Limited, Mumbai vs. Assistant Commissioner of Income Tax, Circle 2(2)(1), Mumbai

In the result, the additional grounds of the assessee are allowed for statistical purposes

ITA 4255/MUM/2023[2015-16]Status: DisposedITAT Mumbai06 Feb 2025AY 2015-16

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjeel&T Technologies Services Ltd Vs Assistant Commissioner Of Income L&T House, N.M. Marg, Tax, Circle 2(2)(1), Mumbai Room No.545, 5Th Floor, Aayakar Mumbai Pan: Aaccl4310P Bhavan, Maharshi Karve Road, Mumbai-400 020 Appellant Respondent

For Appellant: Shri Nitesh JoshiFor Respondent: Dr. K.R. Subhash (CIT- DR)
Section 10ASection 143(3)Section 170Section 2Section 250Section 37Section 90

Deputy Commissioner of Income-Tax, Central Circle-5(4), Mumbai vs. Larsen and Toubro Ltd, Mumbai

ITA 3369/MUM/2023[2009-10]Status: DisposedITAT Mumbai20 Dec 2024AY 2009-10

Bench: Smt Beena Pillaishri Omkareshwar Chidara

Section 147Section 148Section 2Section 48Section 50B

Orion India Systems Private Limited, Mumbai Maharashtra vs. PCIT, Mumbai-Six Circle Fifteen (One)(One)

In the result, the appeal by the assessee is dismissed

ITA 1449/MUM/2024[2018-19]Status: DisposedITAT Mumbai17 Dec 2024AY 2018-19

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhailassessment Year 2018-19

For Appellant: Ms. Khevana GandhiFor Respondent: Mr. R.A. Dhyani, CIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 144BSection 263Section 50B(1)Section 92C

Satish Bachubhai Amlani, Fort-Mumbai vs. Asstt. Commissioner of Income Tax-17(3), Bandra-Mumbai

In the result, the appeal by the assessee is allowed

ITA 4442/MUM/2024[2013-14]Status: DisposedITAT Mumbai21 Oct 2024AY 2013-14

Bench: Shri Amarjit Singhshri Sandeep Singh Karhailsatish Bachubhai Amlani 7301 Elphinstone House, 17 Murzban Road, Fort, Mumbai, Maharashtra–400001 ……………. Appellant Pan: Aabpa4047J

For Appellant: Shri Jisgnesh ParikhFor Respondent: Shri BhangepatilPushkaraj Ramesh, Sr.DR
Section 142(1)Section 143(2)Section 143(3)Section 250Section 271Section 271(1)(c)Section 47Section 50B

DCIT, Mumbai vs. Jaspalsingh Prehaladsingh Chandok, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 4519/MUM/2023[2021-22]Status: DisposedITAT Mumbai03 Sept 2024AY 2021-22

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhailassessment Year 2021-22

For Appellant: Shri Mani JainFor Respondent: Shri Ankush Kapoor
Section 45Section 47Section 50B

Income Tax Officer, Ward -4(1), Nagpur vs. M/S Afzal Cold Storage & Ice Factory, Nagpur

ITA 408/NAG/2017[2017-2018]Status: DisposedITAT Nagpur08 Aug 2024AY 2017-2018

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: NoneFor Respondent: Shri Kailash C. Kanojiya
Section 143(3)Section 147Section 50Section 50ASection 50BSection 50CSection 50C(2)

Deputy Commissioner of Income Tax, Circle-2(1)(1), Bengaluru vs. Deccan Charters Pvt Ltd, Bangalore

In the result, the appeal filed by the revenue stands partly allowed for statistical purposes

ITA 1179/BANG/2024[2019-20]Status: DisposedITAT Bangalore07 Aug 2024AY 2019-20

Bench: Smt. Beena Pillai & Shri Waseem Ahmedassessment Year : 2019-20 M/S. Deccan Charters Pvt. Ltd., The Deputy Jakkur Aerodrome, Commissioner Of Bellary Road, Income Tax, Jakkur B.O., Circle – 2(1)(1), Bangalore North, Bangalore. Vs. Bangalore – 560 064. Pan: Aaccd9105G Appellant Respondent

For Appellant: Smt. Sunaina Bhatia, CAFor Respondent: Shri D.K. Mishra, CIT-DR
Section 143(1)Section 143(1)(a)Section 50Section 50B

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/2023[2016-2017]Status: DisposedITAT Mumbai20 Mar 2024AY 2016-2017

Bench: Shri Kuldip Singh & Ms. Padmavathy Sassessment Year: 2016-17 Dy. Commissioner Of M/S. Larsen & Toubro Income Tax, Limited (Formerly Known Central Circle-5(4), As L & T Shipbuilding Room No.1927, 19Th Floor, Limited), Vs. Air India Building, L&T House, Nariman Point, N.M. Marg, Mumbai - 400021 Ballard Estate, Mumbai – 400 001 Pan: Aaacl0140P (Appellant) (Respondent)

For Appellant: Shri Nitesh Joshi, A.R. &For Respondent: Shri Ajay Chandra, D.R
Section 48(1)Section 50B

Sterling Farm Research and Services Private Limited, Ernakulam vs. The PCIT, Kochi-1, Kochi

In the result, the assessee’s appeal is dismissed

ITA 661/COCH/2022[2016-2017]Status: DisposedITAT Cochin09 Feb 2024AY 2016-2017

Bench: Shri Sanjay Arora & Shri Manomohan Dassterling Farm Research & Services Dy. Commissioner Of Income Tax-1 Pvt. Ltd. Kochi 29/2469 C2, Sterling House Vs. Pettah, Poonithura S.O. Ernakulam 682038 [Pan:Aadcs3199J] (Appellant) (Respondent)

For Appellant: Shri Raja Kannan, AdvocateFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 142(1)Section 143(3)Section 263Section 50Section 50B

Sir Shadilal Enterprises Limited vs. The Deputy Commissioner of Income Tax Circle 23 (2), New Delhi

ITA - 29 / 2024HC Delhi10 Jan 2024
Section 50B

Nelco Ltd., Mumbai vs. A.C.I.T. RG. 15(2)(1), Mumbai

In the result, appeal of assessee is dismissed

ITA 3825/MUM/2019[2011-12]Status: DisposedITAT Mumbai15 Dec 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Asst. Commissioner Of Income Tax, Range 15(2)(1) Nelco Limited Room No.357, 2Nd Floor, El-6, Electronic Zone, Mahape, Navi Mumbai-400710 Vs. Aaykar Bhavan, M.K. Road, Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1983C

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri S. Srinivasu, CIT DR
Section 115JSection 143(2)Section 143(3)Section 50B

M.Ct.M. Corporation, Chennai vs. DCIT, Corporate Circle-4(1), Chennai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 597/CHNY/2023[2000-01]Status: DisposedITAT Chennai29 Nov 2023AY 2000-01

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. No.597/Chny/2023 िनधा"रण वष"/Assessment Year: 2000-01 M. Ct. M. Corporation Private Limited, Vs. The Deputy Commissioner Of [Now Dissolved As M. Ct. M. Global Income Tax, Investments P. Ltd. & Sivagami Corporate Circle 4(1), Holdings (P) Ltd., 761, Anna Salai, Chennai 600 034. Chennai 600 002. [Pan:Aaacm4530C] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Sitharaman, Ca ""थ" की ओर से/Respondent By : Shri Nilay Baran Som, Cit सुनवाई की तारीख/ Date Of Hearing : 20.11.2023 घोषणा की तारीख /Date Of Pronouncement : 29.11.2023 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi, Dated 14.03.2023 Relevant To The Assessment Year 2000-01. 2. The Assessing Officer Has Completed The Assessment Under Section 143(3) R.W.S. 147 Of The Income Tax Act, 1961 [“Act” In Short] Dated 29.09.2021 Assessing Short Term Capital Gains Income Of The 2

For Appellant: Shri G. Sitharaman, CAFor Respondent: Shri Nilay Baran Som, CIT
Section 143(3)Section 50B

Lalita Sanjivreddy Bodkurwar, Nagpur vs. Principal Commissioner of Income Tax-2, Nagpur

Appeal is dismissed in above terms

ITA 90/NAG/2020[2015-16]Status: DisposedITAT Nagpur12 Oct 2023AY 2015-16

Bench: Shri Satbeer Singh Godara & Dr. Dipak Ripote

For Appellant: Shri Abhay Agrawal, AdvocateFor Respondent: Shri Kailash Kanojiya, Sr. DR
Section 143(3)Section 263

Wellman Coke India Limited, Kolkata vs. DCIT, Cir-5(1), Kol, Kolkata

In the result, the appeal of the assessee is allowed as per terms indicated hereinabove

ITA 444/KOL/2023[2018-19]Status: DisposedITAT Kolkata03 Oct 2023AY 2018-19

Bench: Dr. Manish Borad & Shri Sonjoy Sarma

Section 143(2)Section 143(3)Section 194ISection 2Section 250Section 50BSection 80I

A.C.T.I., Circle-11(2), Kolkata vs. M/S Kilburn Chemical Ltd., Kolkata

In the result, appeal of revenue is dismissed

ITA 1911/KOL/2019[2012-13]Status: DisposedITAT Kolkata10 Aug 2023AY 2012-13

Bench: Shri Rajpal Yadav & Shri Girish Agrawalassessment Year: 2012-13 Assistant Commissioner Of Kilburn Chemical Ltd. Income-Tax, Circle-11(2), 16Th Floor, Shantiniketan, 8, Kolkata. Vs. Camac Street, Kolkata- 700017. (Pan: Aaack1427A) (Appellant) (Respondent)

For Appellant: N o n eFor Respondent: Shri S. Datta, CIT, DR
Section 143(3)Section 50B

ACIT Central Circle-13, Delhi vs. Bsbk Engineers Pvt. Ltd., Delhi

In the result, the appeal of the Revenue in ITA No

ITA 5005/DEL/2019[2015-16]Status: DisposedITAT Delhi23 May 2023AY 2015-16

Bench: Shri N.K. Billaiya & Shri Challa Nagendra Prasad

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Kanv Bali, Sr. DR
Section 1Section 50B