Section 50A of Income Tax Act "Special provision for cost of acquisition in case of depreciable asset"
50A. Where the capital asset is an asset in respect of which a deduction on account of depreciation under clause (i) of sub-section (1) of section 32 has been obtained by the assessee in any previous year, the provisions of sections 48 and 49 shall apply subject to the modification that the written down value, as defined in clause (6) of section 43, of the asset, as adjusted, shall be taken as the cost of acquisition of the asset.
Section 50B of Income Tax Act "Special provision for computation of capital gains in case of slump sale"
50B. (1) Any profits or gains arising from the slump sale
effected in the previous year shall be chargeable to
income-tax as capital gains arising from the transfer of
long-term capital assets and shall be deemed to be the
income of the previous year in which the transfer took place
:
Provided that any profits or gains arising from the transfer
under the slump sale of any capital asset being one or more
undertakings owned and held by an assessee for not more than
thirty-six months immediately preceding the date of its
transfer shall be deemed to be the capital gains arising
from the transfer of short-term capital assets.
(2) In relation to capital assets being an undertaking or
division transferred by way of such sale, the "net worth" of
the undertaking or the division, as the case may be, shall
be deemed to be the cost of acquisition and the cost of
improvement for the purposes of sections 48 and 49 and no
regard shall be given to the provisions contained in the
second proviso to section 48.
(3) Every assessee, in the case of slump sale, shall furnish
in the prescribed form 97[a report of an accountant as
defined in the Explanation below sub-section (2) of section
288 before the specified date referred to in section 44AB]
indicating the computation of the net worth of the
undertaking or division, as the case may be, and certifying
that the net worth of the undertaking or division, as the
case may be, has been correctly arrived at in accordance
with the provisions of this section.
Explanation 1.-For the purposes of this section, "net
worth" shall be the aggregate value of total assets of the
undertaking or division as reduced by the value of
liabilities of such undertaking or division as appearing in
its books of account :
Provided that any change in the value of assets on account
of revaluation of assets shall be ignored for the purposes
of computing the net worth.
Explanation 2.-For computing the net worth, the aggregate
value of total assets shall be,-
(a) in the case of depreciable assets, the written down
value of the block of assets determined in accordance with
the provisions contained in sub-item (C) of item (i) of
sub-clause (c) of clause (6) of section 43;
(b) in the case of capital assets in respect of which the
whole of the expenditure has been allowed or is allowable as
a deduction under section 35AD, nil; and
(c) in the case of other assets, the book value of such
assets.
What is Capital gains? Section 45 of Income Tax Act 1961
What are the Transactions not regarded as transfer? Section 47 of Income Tax Act 1961
What is Withdrawal of exemption in certain cases? Section 47A of Income Tax Act 1961
What is Mode of computation? Section 48 of Income Tax Act 1961
What is Cost with reference to certain modes of acquisition? Section 49 of Income Tax Act 1961