P Ltd. is shifting its undertaking from Jaipur to Napasar (other than urban area). It has sold its 4 machineries and 2 sets of furniture during the previous year 2020-21 as under: Assets Rate of Depreciation Book Value (

In the given case though assessee has transferred a group of assets still the transaction cannot be taxed as slump sale because value has been assigned to individual asset. The tax treatment shall be as under: Block of Machinery 15% (On sale of Machinery A, B & C) Particulars Amount (₹) W.D.V. as on 1st April, 2020 11,00,000 Add: Purchase during the year Nil Total 11,00,000 Less: Sale during the year (17,00,000) Short term Capital Gain u/s 50 6,00,000 Block of Machinery 30% (On sale of Machinery D) Particulars Amount (₹) W.D.V. as on 1st April, 2020 9,00,000 Add: Purchase during the year Nil Total 9,00,000 Less: Sale during the year (5,00,000) Short term Capital Loss (4,00,000) Since machine D is only asset in the block and was sold. Therefore block ceased to exist and section 50 is applicable. Block of Furniture 10% (On sale of Furniture X & Z) Particulars Amount (₹) W.D.V. as on 1st April, 2020 1,50,000 Add: Purchase during the year Nil Total 1,50,000 Less: Sale during the year (2,90,000) Short term Capital Gain u/s 50 1,40,000 Computation of Total Capital Gain for P Ltd. Particulars Amount (₹) Short term Capital Gain on Block 15% (Machinery A, B & C) 6,00,000 Short term Capital loss on Block 30% (Machinery D) (4,00,000) Short term Capital Gain on Block 10% (Furniture X & Z) 1,40,000 Total Short Term Capital Gain 3,40,000 Less: Exemption u/s 54G for shifting of undertaking from urban to rural area, on purchase of new machinery and land only within 1 year before or 3 years from the date of transfer of machinery/land) (₹ 2,70,000 + ₹ 1,50,000) (3,40,000) Section 54 G cannot be availed for purchase of furniture. Taxable Short Term Capital Gain Nil