Whether the transfer of entire business (except land and building and unsecured loan for the same) be trated as slump sale? Please provide the refernce to any case law?
12 March 2010
Section 2(42C) defines "slump sale" as under:-
"Slump sale" means the transfer of one or more undertakings as a result of the sate for a Jump sum consideration without values being assigned to the individual assets and liabilities in such sales. "
If the land & building and unsecured loans forms a part of the undertaking, then these too have to be transferred, to consider the transaction as slump sale.
however, if your can justify that the land and building are used not by the business that is sold but is extra and put to general use, then transfer of the same can be avoided and the transaction would be slump sale. The same logic would apply to the unsecured loan.
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