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

Rani Printers P Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal filed by the assessee stands allowed

ITA 757/CHNY/2017[2006-07]Status: DisposedITAT Chennai03 Aug 2017AY 2006-07

Bench: Shri N.R.S. Ganesan & Shri S. Jayaramanआयकर अपील सं./Ita No.757/Mds/2017 "नधा"रण वष" / Assessment Year : 2006-07 M/S Rani Printers Pvt. Ltd., The Deputy Commissioner Of 1091, Evr High Road, V. Income Tax, Vepery, Chennai - 600 007. Company Circle V(3), Chennai - 600 034. Pan : Aaacr 1416 Q (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri S. Nataraja, JCIT
Section 143(3)Section 147Section 148Section 50Section 50B

The ACIT, Cochin vs. Dr. Ramesh Kumar Iswara, Cochin

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

ITA 122/COCH/2016[2006-07]Status: DisposedITAT Cochin08 Jun 2017AY 2006-07

Bench: S/Shri Abraham P. George, Am & George George K., Jm

Section 143(3)Section 148Section 234(1)Section 234BSection 50BSection 54ESection 54F

ITO 6(1)(3), Mumbai vs. Blue Foods P.Ltd, Mumbai

In the result, this appeal by the assessee stands allowed for statistical purposes

ITA 2425/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Jun 2017AY 2009-10

Bench: Shri Shamim Yahya & Shri Pawan Singh

For Appellant: Shri. Jayesh DediaFor Respondent: Shri. Kailash Kanojiya
Section 2Section 50B

M/S. Virtual Software & Training Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is dismissed

ITA 4052/DEL/2013[2001-02]Status: DisposedITAT Delhi29 May 2017AY 2001-02

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2001-02 Vs. Income Tax Officer, Ward -17(4), M/S. Virtual Software & Training Pvt. Ltd., N-136, Panchsheel New Delhi Park, New Delhi Pan : Aaacv8390F (Appellant) (Respondent) Appellant By S/Sh. L.K. Paonam, Ar; K.R. Shukla, Adv.; & Bhupendra Respondent By Sh. Umesh Chand Dubey, Sr.Dr Date Of Hearing 18.05.2017 Date Of Pronouncement 29.05.2017 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 26/03/2013 Of Ld. Commissioner Of Income-Tax (Appeals)-19, New Delhi, For Assessment Year 2001-02 Raising Various Grounds. The Assessee Revised Its Grounds Of Appeal Vide Letter Dated 07/09/2015, Which Were Admitted. The Revised Grounds Of Appeal Are Reproduced As Under:

Section 143(3)Section 16ASection 2Section 50B

Ambo Agro Products Ltd., Kolkata vs. The PCIT, Kolkata-1, Kolkata

In the result, appeal of assessee is allowed

ITA 676/KOL/2016[2009-2010]Status: DisposedITAT Kolkata19 May 2017AY 2009-2010

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(2)Section 143(3)Section 263Section 50Section 50B

DCIT, New Delhi vs. M/S. Mindworks Global Media Services Pvt. Ltd., New Delhi

In the result appeal filed by the revenue stands dismissed

ITA 1995/DEL/2014[2008-09]Status: DisposedITAT Delhi27 Apr 2017AY 2008-09

Bench: Sh. N. K. Saini & Smt. Beena A. Pillaidcit Mindworks Global Media A Circle-6(1), Services Pvt. Ltd. New Delhi Vs. E- 24, Second Floor, Greater Kailash Enclave, New Delhi Gir/Pan: Aadcm9970H (Appellant) (Respondent) A Appellant By : Sh.Rajesh Kumar, Sr. Dr Respondent By : Sh. Neeraj Sharma, Sh. Manpreet Bagga Cas. Date Of Hearing : 24.04.2017 Date Of Pronouncement : 27.04.2017

For Appellant: Sh.Rajesh Kumar, Sr. DRFor Respondent: Sh. Neeraj Sharma
Section 143(1)Section 143(2)Section 68

C I T vs. M/S Ganganagar Bottling Co Ltd

The appeal stands dismissed

ITA/6/2006HC Rajasthan24 Apr 2017
Section 55(2)(a)

Patman & G. Hospitality P.Ltd, Mumbai vs. ITO 7(1)(3), Mumbai

In the result, appeal of the assessee is allowed in part

ITA 889/MUM/2013[2009-10]Status: DisposedITAT Mumbai21 Apr 2017AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm M/S. Patman & G.Hospitality Vs. Ito – 7 (1)-3, Mumbai Pvt. Ltd., 38, Kakad Udyog Bhavan, L.J.Cross Road No.1, Mahim (W), Mumbai – 400 016 Pan/Gir No. Aacp1821B Appellant) .. Respondent)

Section 143(3)Section 50B

Samir Kumar Maity, Howrah vs. I.T.O WD - 48(2), Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 1767/KOL/2013[2009-10]Status: DisposedITAT Kolkata10 Mar 2017AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri I. Banerjee, FCAFor Respondent: Shri Sallong Yaden, Addl. CIT, Sr. DR
Section 143(3)Section 48Section 50B

The Dy CIT Cir.1(1), Mumbai vs. M/S. Aegis Logistics Ltd, Mumbai

Appeal stands allowed

ITA 8372/MUM/2004[1999-2000]Status: DisposedITAT Mumbai10 Mar 2017AY 1999-2000

Bench: S/Sh.Rajendra & C. N. Prasadआयकर अपील सं./Ita/7825/Mum/2004,िनधा"रण वष" /Assessment Year:1999-2000 आयकर अपील सं./Ita/6905/Mum/2006 ,िनधा"रण वष" /Assessment Year:1999-2000 Aegis Logistics Limited Acit, Circle-1(1) 403, Peninsula Chambers, Morarjee Mills Mumbai. Compound,G.K. Marg, Lower Parel(W) Vs. Mumbai-400 013. Pan:Aaaca 3302 N (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर अपील सं./I.T.A./8372/Mum/2004 ,िनधा"रण वष" /Assessment Year:1999-2000 Acit, Circle-1(1) Vs. Aegis Logistics Limited Mumbai. Mumbai-400013 (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri S.K. Mishra-Dr अपीलाथ" क" ओर से /Assessee By: Shri Percy Pardiwala/Ms. Vasanti Patel सुनवाई क" तारीख / Date Of Hearing: 09/02/2017 घोषणा क" तारीख / Date Of Pronouncement:10/03/2017 लेखा लेखा सद"य लेखा लेखा सद"य सद"य, राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार/ Per Rajendra A.M.- अनुसार Challenging The Order Dated 16.6.2004 Of The Cit(A)-I,Mumbai The Assessee & The Assessing Officer(Ao)Have Filed Cross Appeals For The Year Under Consideration.The Assessee Has Also Filed Against The Penalty Imposed U/S.271(1)(C) For The Year Under Appeal.We Will Be Deciding All The Appeals By Single Common Order.Assessee-Company,Engaged In Business Of Manufacturing Of Chemicals,Filed Its Return Of Income,On 31.12.1999,Declaring Total Income Of Rs.5.97Crores.The Ao Completed Assessment U/S.143(3) Of The Act On 28.3.2002 Determin -Ing Its Income At Rs.13.93Crores. During The Course Of Hearing Before Us The Authorised Representative (Ar) Stated That The Assessee Was Not Interested In Pursuing Grounds No1.A, 1.C, 1.D & 1.E. Hence,Same Stand Dismissed, As Not Pressed.

For Appellant: Shri Percy Pardiwala/Ms. Vasanti PatelFor Respondent: Shri S.K. Mishra-DR
Section 143(3)Section 271(1)(c)

M/S. Aegis Logistics Ltd., Mumbai vs. ACIT Cir. 1(1), Mumbai

Appeal stands allowed

ITA 7825/MUM/2004[1999-2000]Status: DisposedITAT Mumbai10 Mar 2017AY 1999-2000

Bench: S/Sh.Rajendra & C. N. Prasadआयकर अपील सं./Ita/7825/Mum/2004,िनधा"रण वष" /Assessment Year:1999-2000 आयकर अपील सं./Ita/6905/Mum/2006 ,िनधा"रण वष" /Assessment Year:1999-2000 Aegis Logistics Limited Acit, Circle-1(1) 403, Peninsula Chambers, Morarjee Mills Mumbai. Compound,G.K. Marg, Lower Parel(W) Vs. Mumbai-400 013. Pan:Aaaca 3302 N (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर अपील सं./I.T.A./8372/Mum/2004 ,िनधा"रण वष" /Assessment Year:1999-2000 Acit, Circle-1(1) Vs. Aegis Logistics Limited Mumbai. Mumbai-400013 (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri S.K. Mishra-Dr अपीलाथ" क" ओर से /Assessee By: Shri Percy Pardiwala/Ms. Vasanti Patel सुनवाई क" तारीख / Date Of Hearing: 09/02/2017 घोषणा क" तारीख / Date Of Pronouncement:10/03/2017 लेखा लेखा सद"य लेखा लेखा सद"य सद"य, राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार/ Per Rajendra A.M.- अनुसार Challenging The Order Dated 16.6.2004 Of The Cit(A)-I,Mumbai The Assessee & The Assessing Officer(Ao)Have Filed Cross Appeals For The Year Under Consideration.The Assessee Has Also Filed Against The Penalty Imposed U/S.271(1)(C) For The Year Under Appeal.We Will Be Deciding All The Appeals By Single Common Order.Assessee-Company,Engaged In Business Of Manufacturing Of Chemicals,Filed Its Return Of Income,On 31.12.1999,Declaring Total Income Of Rs.5.97Crores.The Ao Completed Assessment U/S.143(3) Of The Act On 28.3.2002 Determin -Ing Its Income At Rs.13.93Crores. During The Course Of Hearing Before Us The Authorised Representative (Ar) Stated That The Assessee Was Not Interested In Pursuing Grounds No1.A, 1.C, 1.D & 1.E. Hence,Same Stand Dismissed, As Not Pressed.

For Appellant: Shri Percy Pardiwala/Ms. Vasanti PatelFor Respondent: Shri S.K. Mishra-DR
Section 143(3)Section 271(1)(c)

D.C.I.T Cir - 10, Kolkata vs. M/S Ici India Ltd, Kolkata

ITA 2121/KOL/2013[2006-07]Status: DisposedITAT Kolkata08 Mar 2017AY 2006-07

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

For Appellant: Shri R. N. Bajoria, Sr. AdvocateFor Respondent: Shri Niraj Kumar, CIT, DR
Section 10Section 143(3)Section 14ASection 50B

M/S Akzo Nobel India Ltd. (Formerly Known As Ici India Ltd.), Kolkata vs. The DCIT, Circle - 10, Kolkata

ITA 1829/KOL/2013[2006-07]Status: DisposedITAT Kolkata08 Mar 2017AY 2006-07

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

For Appellant: Shri R. N. Bajoria, Sr. AdvocateFor Respondent: Shri Niraj Kumar, CIT, DR
Section 10Section 143(3)Section 14ASection 50B

Afl P.Ltd, Mumbai vs. Asst CIT Cen Cir 13, Mumbai

The appeal of the assessee is partly allowed in terms of our aforesaid observations

ITA 5697/MUM/2014[2011-12]Status: DisposedITAT Mumbai17 Feb 2017AY 2011-12

Bench: Shri R.C. Sharma, Am & Shri Ravish Sood, Jm आयकर अपील सं./I.T.A. No.5697/Mum/2014 (निर्धारण वर्ा / Assessment Year: 2011-12,) Afl Private Limited The Acit, Central Circle 13 Afl House, Lok Bharati 10Th Floor, Cgo Building, बिधम/ Complex, Marol Maroshi Mumbai. Road, Andheri (E), Vs. Mumbai- 400 059. स्थायीलेखासं./जीआइआरसं./Pan/Gir No. Aabca2213P (अपीलाथी /Appellant) (प्रत्यथी / Respondent) :

For Appellant: Shri Nitesh Joshi & Sunil SFor Respondent: Shri. Saurabh Kumar, Sr. A.R
Section 14Section 143(1)Section 143(2)Section 143(3)Section 14ASection 50B

DCIT, Coimbatore vs. M/S. Drs Industries Ltd., Coimbatore

In the result, the appeal of the Revenue as well as the cross- objection of the assessee are dismissed

ITA 2727/CHNY/2016[2011-12]Status: DisposedITAT Chennai03 Feb 2017AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita No.2727/Mds/2016 & C.O. No.176/Mds/2016 (In I.T.A. No.2727/Mds/2016) "नधा"रण वष" / Assessment Year : 2011-12

For Appellant: Shri Shiva Srinivas, JCITFor Respondent: Shri G. Ramaswamy, CA
Section 115JSection 2Section 50B(1)Section 50B(3)

Wockhardt Hospitals Ltd, Mumbai vs. Addl CIT RG 10(1), Mumbai

ITA 7454/MUM/2013[2010-11]Status: DisposedITAT Mumbai06 Jan 2017AY 2010-11

Bench: S/Sh.Rajendra & Amarjit Singhआयकर अपील सं./I.T.A./7454/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 िनधा"रण िनधा"रण वष" वष" M/S. Wockhardt Hospitals Limited Addl. Cit-10(1) Wockhardt Towers, Bandra Kurla Room No.454, Aayakar Bhavan Vs. Complex, Bandra (E),Mumbai-400 051. M.K. Road,Mumbai-20. Pan:Aaacw 3342 G (अपीलाथ" /Appellant) (""यथ" / Respondent) आयकर अपील सं./I.T.A./7021/Mum/2013,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2010-11 िनधा"रण िनधा"रण वष" वष" Acit-10(1) Vs. M/S. Wockhardt Hospitals Limited Aayakar Bhavan,Mumbai. Mumbai-51. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Ms. Sunita Billa-Dr अपीलाथ" क" ओर से /Assessee By:Shri Niraj Sheth सुनवाई क" तारीख / Date Of Hearing: 08.12.2016 घोषणा क" तारीख / Date Of Pronouncement: 06.01.2017 आयकर आयकर अिधिनयम आयकर आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)केकेकेके अ"तग"त धारा अ"तग"त अ"तग"त आदेश अ"तग"त आदेश आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा लेखा सद"य लेखा लेखा सद"य सद"य, राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार/ Per Rajendra A.M.- अनुसार Challenging The Order Dated 25/09/2013 Of The Cit (A)-21,Mumbai The Assessee & The Assessing Officer(Ao)Have Filed Cross Appeals For The Above-Mentioned Assessment Year. Assessee-Company,Engaged In The Business Of Running Hospitals,Filed Its Return Of Income On 15/10/2010.A Revised Return Was Filed On 01/03/2012,Declaring Income At Rs. 8.19 Crores.The Ao Completed The Assessment,U/S.143 (3) Of The Act,On 28/03/2013, Determining Its Income At Rs.325.89 Crores.

For Appellant: Shri Niraj ShethFor Respondent: Ms. Sunita Billa-DR
Section 143Section 254(1)Section 50B

Cyfast Enterprises P.Ltd, Mumbai vs. DCIT Cir 10(3), Mumbai

The appeal of the Revenue is allowed

ITA 1878/MUM/2015[2011-12]Status: DisposedITAT Mumbai22 Nov 2016AY 2011-12

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year:2011-12 Cyfast Enterprises Pvt. Ltd. Dcit, Afl House, Circle-10(3), बनाम/ Lok Bharati Complex, Aayakar Bhavan, Vs. Marol Maroshi Road, M.K. Road, Andheri (East), Mumbai-400020 Mumbai-400059 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacu4945K "नधा"रती क" ओर से / Assessee By Shri Nitesh Joshi & Shri Sunil Jhunjhunwala राज"व क" ओर से / Revenue By Shri Anandi Verma-Cit-Dr

Section 50B

Triune Projects Private Limited vs. Deputy Commissioner of Income Tax

ITA/448/2016HC Delhi22 Nov 2016

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 50B

Aditya Birla Telecom Limited, Mumbai vs. Dy. Comm of Income Tax 10(1), Mumbai

In the result appeal of the assessee is allowed in part in terms indicated hereinabove

ITA 341/MUM/2014[2010-11]Status: DisposedITAT Mumbai19 Oct 2016AY 2010-11
For Appellant: Shri Jehangir Mistri, Sr. AdvocateFor Respondent: Shri Suresh Kumar, Sp. Counsel
Section 143(3)Section 2Section 391Section 394Section 45Section 47

Dun & Bradstreet Information Services India P. Ltd, Mumbai vs. CIT 8, Mumbai

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

ITA 3989/MUM/2013[2007-08]Status: DisposedITAT Mumbai28 Sept 2016AY 2007-08

Bench: Shri B. R. Baskaran, Am & Shri Sandeep Gosain, Jm Dun & Bradstreet Information Vs. The Commissioner Of Services India Pvt. Ltd., Icc Income Tax, Chambers, 98, Saki Vihar Road, Aayakar Bhavan, Powai, Mumbai 400 072 M. K. Road, Mumbai Pan: Aaacd P Appellant .. Respondent

Section 10ASection 143(1)Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 144C(2)Section 263Section 436Section 50B