IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER &

SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER

1. ITA No. 6580/Mum/2025 (Assessment Year: 2012-13) 2. ITA No. 6578/Mum/2025 (Assessment Year: 2013-14)

&

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

3. ITA No. 6579/Mum/2025 (Assessment Year: 2014-15)

Date of Hearing 22.01.2026 Date of Pronouncement 30.01.2026

आदेश / ORDER

PER MAKARAND VASANT MAHADEOKAR, AM:

These three appeals are filed by the assessee against

separate orders passed by the Commissioner of Income-tax

(Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] arising out of assessment orders passed by the Assessing Officer under section 143(3) of the Income-tax Act, 1961 [hereinafter referred to as “the Act”]. Since the issues involved in all the three appeals are identical and arise out of a common set of facts, they were heard together and are being disposed of by this consolidated order for the sake of convenience and consistency.

2. We take up the appeal in ITA No. 6580/Mum/2025 for Assessment Year 2012-13 as the lead year.

Facts of the Case

3. The assessee is a company engaged in the business of owning and operating a five-star hotel at Kovalam Beach, Thiruvananthapuram, known as “Kovalam Leela Raviz Hotel”. The assessee acquired the hotel undertaking of M/s Hotel Leela Venture Ltd. on a going concern basis by way of slump sale under a Scheme of Arrangement sanctioned by the Hon’ble Bombay High Court under sections 391 to 394 of the Companies Act, 1956, vide order dated 24.02.2012, with the appointed date as 01.09.2011, for a lump sum consideration of Rs. 500 crores. The assessee also took over liabilities amounting to Rs. 2 crores.

4. For Assessment Year 2012-13, the assessee filed its return of income on 25.09.2012 declaring total income of Rs. 39,14,740/- under the normal provisions of the Act and book profit of Rs. 2,34,93,701/- under section 115JB of the Act. The return was processed under section 143(1) of the Act. The case was selected for scrutiny and notice under section 143(2) dated 23.09.2013 was issued. Notice under section 142(1) along with questionnaire was also issued. The assessee furnished details through its authorised representatives from time to time. The assessment was completed by the Dy. Commissioner of Income- tax, Circle 10(1)(2), Mumbai, under section 143(3) vide order dated 30.03.2015.

5. During the course of assessment proceedings, it was noticed that the assessee had acquired Hotel Leela, Kovalam as a going concern under slump sale from M/s Hotel Leela Ventures Ltd. The assessee claimed depreciation aggregating to Rs. 25,86,15,073/- on the assets so acquired. The Assessing Officer then examined the written down values of the same assets in the books of M/s Hotel Leela Ventures Ltd. as on the date of transfer, which were as under:

6. The Assessing Officer further noted that the assessee had allocated the slump sale consideration on the basis of valuation report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

report of M/s BDO & Co., as under:

7. When questioned, the assessee submitted that the values were apportioned based on enterprise valuation carried out by M/s BDO Consulti