Slump Sale or Demerger? – A Better Tax Efficient Business Reconstruction Tool

  • Esakki Ammal K
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  • Esakki Ammal K

    Research Scholar at The Tamilnadu Dr.Ambedkar Law University, Chennai, India.

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After the amendment of Income-tax Act of 1961, the provisions have changed drastically. Most of which are driven by novel techniques employed by tax counsels and upheld/approved by appellate authorities. Even after such amendment, tax counsels backed by clients continue to employ tax methods that are not approved by the tax authorities, resulting in a litigation and, in most cases, law changes to help the tax authorities win the battle. Setting court decisions aside is often one-sided. Of fact, in unusual circumstances, despite being in their favour, certain legal rulings perplex taxpayers and other stakeholders. Rattha Citadines Boulevard Chennai (P.) Ltd v. Dy. CIT is an instance of such a ruling. In Sesa Goa Ltd v. Jt. CIT , the court made several smart findings, such as comparing the Income-tax Act, 1922 with the Income-tax Act, 1961 when it was first passed. This article analyses the tax benefits provided on slump sales vs demergers, taking into account the Finance Act of 2021's latest modifications.


Research Paper


International Journal of Law Management and Humanities, Volume 5, Issue 1, Page 583 - 590


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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