Define the term Slump Sale as per Income Tax Act, 1961 and explain the tax treatment of a Slump Sale Transaction.

Section 2(42C) of the Income Tax Act, 1961 defines slump sale as a means of transfer of one or more undertaking as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. Tax treatment: Normally, any sale of a capital asset will give rise to a capital receipt and any profit derived may give rise to capital gains in certain cases. This is true in the case of sale of an undertaking also. Determination of the value of an asset or liability (for sole purpose of payment of stamp duty, registration fees or other similar taxes or fee) shall not be regarded as assignment of values to individual assets or liabilities. As per section 50B of the Income Tax Act, 1961 any profit or gains arising from the slump sale effected in the previous year shall be chargeable to income-tax as capital gains from the transfer of long-term capital asset and shall be deemed to be he income of the previous year in which the transfer took place. Any profit or gains arising from the transfer under the slump sale of any capital assets being one or more undertaking owned and held by an assessee for not more than the thirty-six months immediately preceding the date of transfer shall be deemed to be the capital gains arising from the transfer of short-term capital assets.