Where net worth is negative, will FVC increase due to negative net worth – debatable but Mum ITAT (SB) says negative net worth will increase FVC

Sec 56(2) & section 50C are NOT applicable to slump sale transaction since no value is possible to be assigned to individual assets

Difference between transaction value paid & value of assets is goodwill or non compete fees on which depreciation is available Areva T & D India Ltd (DEL) &

Slump sale is considered as transfer by succession u/s 170 even though not expressly provided, so depreciation is on WDV value – Archroma India (Mum)

Transfer of shares does not result in transfer of underlying assets as assets remain in company so it is not a slump sale – UTV Software (BOM)

When Parent company wants to raise fund but does not wants to dilute stake can trf business in subsidiary with exchange of stake of subsidiary to outsider

Whether payment of consideration in kind/shares would qualify as, sale or exchange of assets – debatable and so it is advisable to include some monetary consideration to ensure that it falls within the ambit of a ‘slump sale

Reference to value of net current asset in slump sale agreement cannot lead to the conclusion that there was a sale of itemized assets. Premier Automobiles Ltd 264 ITR 193 (Bom)

In case of slump sale : successors liability attracts u/s 170 & successor is liable for the income tax in specific event

Liability under Section 170 is not in any way mitigated merely by virtue of a Section 281 certificate