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

Piramal Enterprise Limited (Formerly Known As Piramal Healthcare Limited), Mumbai vs. Pr. Commissioner of Income Tax, Range 7, Mumbai

In the result, the appeal is allowed for statistical purposes in the specific terms indicated above

ITA 2489/MUM/2019[2012-13]Status: DisposedITAT Mumbai03 Mar 2021AY 2012-13
Section 143(3)Section 154Section 263

Pvr Limited As Successor-in-Interst of Spi Cinema Private Limited, Gurgaon vs. Asst. Commissioner of Income Tax, Circle-14(1), Hyderabad

ITA 2311/HYD/2018[2015-16]Status: DisposedITAT Hyderabad04 Jan 2021AY 2015-16

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

For Appellant: Shri K.A.Sai Prasad, ARFor Respondent: Smt. Nivedita Biswas, DR
Section 143(1)Section 143(2)Section 143(3)

DCIT Corporate Circle-2(1), Chennai vs. Greenstar Fertilizers Ltd., Chennai

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

ITA 34/CHNY/2020[2012-13]Status: DisposedITAT Chennai31 Dec 2020AY 2012-13

Bench: Shri V.Durga Rao & Shri G. Manjunathaआयकरअपीलसं./I.T.A.Nos.34 & 35 /Chny/2020 ("नधा"रणवष" / Assessment Years: 2012-13 & 2013-14) The Deputy Commissioner Of Vs M/S. Green Star Fertilizers Ltd, Income Tax, No.8, Spic House, Corporate Circle-2(1), Mount Road, Guindy, Room No.511, Wanaparthy Block Chennai-600 032. Chennai-600 034. Pan: Aadcg 9451D (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. B.Ramakrishnan,FCA &
Section 37Section 37(1)Section 50B

DCIT Corporate Circle-2(1), Chennai vs. Greenstar Fertilizers Ltd., Chennai

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

ITA 35/CHNY/2020[2013-14]Status: DisposedITAT Chennai31 Dec 2020AY 2013-14

Bench: Shri V.Durga Rao & Shri G. Manjunathaआयकरअपीलसं./I.T.A.Nos.34 & 35 /Chny/2020 ("नधा"रणवष" / Assessment Years: 2012-13 & 2013-14) The Deputy Commissioner Of Vs M/S. Green Star Fertilizers Ltd, Income Tax, No.8, Spic House, Corporate Circle-2(1), Mount Road, Guindy, Room No.511, Wanaparthy Block Chennai-600 032. Chennai-600 034. Pan: Aadcg 9451D (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. B.Ramakrishnan,FCA &
Section 37Section 37(1)Section 50B

The Assistant Commissioner of Income Tax, Circle-3(1), Visakhapatnam vs. Devi Sea Foods Limited, Visakhapatnam

In the result, appeal of the revenue as well as the cross objections of the assessee are dismissed

ITA 497/VIZ/2019[2013-14]Status: DisposedITAT Visakhapatnam18 Jun 2020AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.497/Viz/2019 (निर्धारण वर्ा/Assessment Year:2013-14) Asst.Commissioner Of Income Tax Vs M/S Devi Sea Foods Limited Circle-3(1) D.No.50-1-51/1 Visakhapatnam Asr Nagar, Seethammadhara Visakhapatnam [Pan : Aabcd0248B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection No.130/Viz/2019 Arising Out Of I.T.A.No.497/Viz/2019 (निर्धारण वर्ा/Assessment Year:2013-14) M/S Devi Sea Foods Limited Vs Asst.Commissioner Of D.No.50-1-51/1 Income Tax Asr Nagar Circle-3(1) Seethammadhara Visakhapatnam Visakhapatnam [Pan : Aabcd0248B] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) रधजस्व कीओर से /Revenue By : Shri S.Ravi Shankar Narayan, Cit, Dr निर्धाऩरती की ओर से / Assessee By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 08.06.2020 घोर्णध की तधरीख/Date Of Pronouncement : 19.06.2020

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri S.Ravi Shankar Narayan
Section 180Section 2Section 50Section 50B

Universal Medicare P.Ltd, Mumbai vs. DCIT Cen Cir 3(2), Mumbai

In the result this ground of appeal is allowed for

ITA 4418/MUM/2016[2012-13]Status: DisposedITAT Mumbai06 Mar 2020AY 2012-13

Bench: Shri Pawan Singh & Shri S. Rifaur Rahmanuniversal Medicare Pvt. Ltd., Dcit, Central Cricle-3(2), Capsulation Premises, Mumbai (Erstwhile Asst. Sion Trombay Road, Deonar, Vs. Commissioner Of Income Mumbai-400088. Tax, Cc-20, Mumbai), Room No. 1923, 19Th Floor, Pan: Aaacu0717B Air India Building, Nariman Point, Mumbai-400021. Appellant Respondent C.O. No. 268/Mum/2017 (Assessment Year 2012-13) Dcit, Central Cricle-3(2), Universal Medicare Pvt. Ltd., Mumbai (Erstwhile Asst. Capsulation Premises, Commissioner Of Income Vs. Sion Trombay Road, Deonar, Tax, Cc-20, Mumbai), Room Mumbai-400088. No. 1923, 19Th Floor, Air Pan: Aaacu0717B India Building, Nariman Point, Mumbai-400021. Appellant Respondent Appellant By : Shri J.D. Mistry Senior Advocate With Shri Manish Shah Advocate Respondent By : Mrs. S. Padmaja (Cit-Dr)

For Appellant: Shri J.D. Mistry Senior Advocate with Shri Manish Shah AdvocateFor Respondent: Mrs. S. Padmaja (CIT-DR)
Section 143(3)Section 2Section 254(1)Section 50B

Rmi Cycles Pvt. Ltd., Rajpura vs. ACIT, Circle, Mandi Gobindgarh

In the result, the appeal of the assessee is treated as allowed for

ITA 826/CHANDI/2019[2010-11]Status: DisposedITAT Chandigarh20 Jan 2020AY 2010-11

Bench: Shri N.K. Saini & Shri Sanjay Gargआयकरअपीलसं./Ita No. 826/Chd/2019 "नधा"रणवष" / Assessment Year : 2010-11

For Appellant: NoneFor Respondent: Shri G.S. Phani Kishore, CIT DR
Section 143(3)Section 263Section 50B

M/S. Doon Valley Roller Flour Mills Ltd., Muzaffarnagar vs. ACIT, Muzaffarnagar

In the result appeal of the assessee is allowed

ITA 1047/DEL/2015[2010-11]Status: DisposedITAT Delhi20 Jan 2020AY 2010-11

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

For Appellant: NoneFor Respondent: Shri Jagdish Singh, Sr. DR
Section 271(1)Section 271(1)(c)Section 50Section 50BSection 50C

ACIT, Circle - 1(1), Kolkata vs. M/S. Mcnally Bharat Engineering Company Limited, Kolkata

Appeal is dismissed

ITA 1369/KOL/2019[2009-10]Status: DisposedITAT Kolkata31 Dec 2019AY 2009-10

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकर अपीलसं./I.T.A No.1369/Kol/2019 ("नधा"रण वष" / Assessment Year: 2009-10) Acit, Circle-1(1), Kolkata Vs. M/S. Mcnally Bharat Engineering Co. Ltd. 4, Mangoe Lane, 7Th Floor, Kolkata. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcm9443R (Appellant) .. (Respondent)

For Appellant: Shri Radhey Shyam, CITFor Respondent: Shri Alpesh Gupta, AR
Section 115JSection 143(3)

Trimbak Hatcheries Pvt. Ltd., Nashik vs. Assistatn Commissioner of Income-Tax, Nashik

In the result, the appeal of the assessee is dismissed

ITA 951/PUN/2017[2008-09]Status: DisposedITAT Pune04 Nov 2019AY 2008-09

Bench: Shri D. Karunakara Rao, Am & Shri S. S. Viswanethra Ravi, Jm आयकर अपील सं. / Ita No.951/Pun/2017 िनधा"रण वष" / Assessment Year : 2008-09 Trimbak Hatcheries Pvt. Ltd., Flat No.4 & 5, Anandkunj Apartment, Old Gangapur Naka, Gangapur Road, Nashik – 422005. .......अपीलाथ" / Appellant Pan : Aabct0456H बनाम / V/S. Acit, Circle-1, ……""यथ" / Respondent Nashik. Assessee By : Shri Kishor Phadke Revenue By : Shri Pankaj Garg सुनवाई क" तारीख / Date Of Hearing : 05.11.2019 घोषणा क" तारीख / Date Of Pronouncement : 06.11.2019 आदेश / Order Per D. Karunakara Rao, Am: This Appeal Is Filed By The Assessee Against The Order Of Cit(A)-1, Nashik Dated 13.02.2017 For The Assessment Year 2008-09. 2. The Grounds Raised By The Assessee Are As Under :- “1. The Learned Cit(A)-1, Nasik & The Learned Ao Erred In Law & On Facts In Not Allowing Set-Off Of Brought Forward Business Loss Amounting To Rs. 1,98,42,328/- Against The Short Term Capital Gain Arising From Sale Of Building & Other Depreciable Assets, Which Were Used For Carrying Out Business Activities. 2. The Learned Cit(A)-1, Nasik & The Learned Ao Erred In Law & On Facts In Not Allowing Set-Off Of Brought Forward Business Loss Against The Long Term Capital Gain Arising From Sale Of Land, Which Was Distressed Sale. 3. The Appellant Craves Leave To Add / Modify / Alter / Delete All Or Any Of The Grounds Of Appeal.”

For Appellant: Shri Kishor PhadkeFor Respondent: Shri Pankaj Garg
Section 2Section 50B

Morarjee Realities Ltd. (Now Known As Peninsula Land Ltd.), Mumbai vs. Dy.C.I.T. Circle 6(3), Mumbai

In the result, appeal of the assessee as well as of the Revenue is partly allowed

ITA 2135/MUM/2009[2004-2005]Status: DisposedITAT Mumbai30 Aug 2019AY 2004-2005

Bench: Shri G.S. Pannu & Shri Sandeep Gosain: A.Y : 2004-05

For Appellant: Shri Saurabh SoparkarFor Respondent: Shri Sushilkumar Poddar
Section 143(3)Section 28Section 45

DCIT, Alappuzha vs. M/S Aceelerated Freeze Drying Co, Ltd, Alappuzha

In the result, the appeal of the Revenue is allowed and the appeal of the

ITA 714/COCH/2008[2002-03]Status: DisposedITAT Cochin28 Jun 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 2Section 2(14)Section 42Section 50BSection 50B(1)

Aceelerated Freeze Drying Co.Ltd, Alappuzha vs. DCIT, Alappuzha

In the result, the appeal of the Revenue is allowed and the appeal of the

ITA 1286/COCH/2005[2002-03]Status: DisposedITAT Cochin28 Jun 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 2Section 2(14)Section 42Section 50BSection 50B(1)

M/S. Laffans Petrochemicals Ltd., Mumbai vs. DCIT Range- 10(2)(1), Mumbai

In the result, appeal of the assessee is party allowed

ITA 1464/MUM/2018[2012-13]Status: DisposedITAT Mumbai29 May 2019AY 2012-13

Bench: Shri G.S. Pannu & Shri Ravish Soodassessment Year : 2012-13

For Appellant: Shri.Deepak Tralshawala &For Respondent: Ms. Nilu Jaggi
Section 143(3)Section 50B

Mesers Embrocia Farms Pvt Ltd, Pathankot vs. Assistant Commissioner of Income Tax, Circle-6, Pathankot

In the result, the assessee’s appeal is (in ITA No

ITA 561/ASR/2018[2006-07]Status: DisposedITAT Amritsar13 May 2019AY 2006-07

Bench: Sh. Sanjay Arorai.T.A. Nos. 561/Asr/2018 & 284/Asr/2017 Assessment Year: 2006-07

For Appellant: Sh. Tarsem Lal, AdvFor Respondent: Sh. Charan Dass, Sr. D.R
Section 143(3)Section 154Section 250Section 271(1)(c)Section 50C

M/S Embrocia Farms Pvt Ltd., Pathankot vs. D.C.I.T, Circle-6, Pathankot

In the result, the assessee’s appeal is (in ITA No

ITA 284/ASR/2017[2006-07]Status: DisposedITAT Amritsar13 May 2019AY 2006-07

Bench: Sh. Sanjay Arorai.T.A. Nos. 561/Asr/2018 & 284/Asr/2017 Assessment Year: 2006-07

For Appellant: Sh. Tarsem Lal, AdvFor Respondent: Sh. Charan Dass, Sr. D.R
Section 143(3)Section 154Section 250Section 271(1)(c)Section 50C

M/S.Amalgam Foods Ltd, Kochi vs. The DCIT, Cir-1, Alleppey

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

ITA 110/COCH/2018[2003-04]Status: DisposedITAT Cochin09 Apr 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 2Section 43BSection 50(2)Section 50B

Inox Renewables Limited, Vadodara vs. ACIT, Circle1(1)(2), Vadodara

In the result, the appeal of the assessee is allowed

ITA 1731/AHD/2017[A.Y- 2012-13, F.Y- 2011-12]Status: DisposedITAT Ahmedabad07 Mar 2019

Bench: Shri Rajpal Yadavआयकर अपील सं./ Ita No.1731/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 Inox Renewables Ltd. Vs. Acit, Cir.1(1)(2) Vadodara. Abs Towers 2Nd Floor Old Padra Road Vadodara 390 007 Pan : Aacci 4628 K

For Appellant: Shri Parin Shah, ARFor Respondent: Shri Anand Kumar, Sr.DR
Section 143(2)Section 144C

Nhance Engineering Solutions Private Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-16(1), Hyderabad

In the result, appeal of the assessee is allowed

ITA 1522/HYD/2018[2013-14]Status: DisposedITAT Hyderabad20 Feb 2019AY 2013-14

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2013-14 Nhance Engineering Vs. Dy. Commissioner Of Solutions Pvt. Ltd., Income-Tax, Hyderabad. Circle – 16(1), Hyderabad. Pan – Aabcn9474D Appellant Respondent Assessee By: Shri N. Venkateswara Rao Revenue By: Shri Phani Raju Date Of Hearing: 07/02/2019 Date Of Pronouncement: 20/02/2019 O R D E R Per S. Rifaur Rahman, Am:

For Appellant: Shri N. Venkateswara RaoFor Respondent: Shri Phani Raju
Section 115JSection 143(2)Section 143(3)Section 274Section 50BSection 50B(3)

DCIT, Circle-1(1), Kolkata vs. M/S. Kilburn Office Automation Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 1861/KOL/2017[2005-06]Status: DisposedITAT Kolkata20 Feb 2019AY 2005-06
Section 234BSection 250Section 50B