Hi Sir, I am Kumar from Karnataka. I have a peculiar problem. I wanted to sell my KIADB(Karnataka Industrial land) land with power, building and machinery as a whole through Slump sale under section 50B. The market value of the land is 80 lacs where as the SR value is 1.65 Cr. I am doing a distress sale of the entire undertaking for Rs 80 lacs. Now my auditor says that Slump sale will not work in Karnataka and if we do we are sure to get notice from income tax and will have to pay CG for the SR value. I am aware that stamp duty has to be on SR value. My question is what is the application of Income tax on me and the buyer. Will income tax consider the slump sale value on the agreement Rs 80 lacs or the SR value Rs 1.65 lacs for me. Also what will be the implication of CG on the buyer. Will he be asked to pay CG on 1.65 or the agreement value of Rs 80 lacs. Please advice will be of great help as I have no other option but to sell my undertaking...thank you
CAclubindia
