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2013 (12) TMI 1544 - ITAT KOLKATAWhether the reserve and surplus of the amalgamated company can be treated as benefits accruing from business of the assessee in term of provisions of Section 28(iv) of the Act or not? - Held that:- In the present case there is no material whatsoever before us to indicate that the benefit, even if accruing to the assessee, on account of amalgamation by way of merger as not in revenue field, and not of an income nature. Accordingly, there was no occasion to invoke Section 28(iv) of the Act. According to us, CIT(A) was quite justified in his observations that “the amalgamation is not an adventure in the nature of trade” and that “this transaction is clearly a capital account transaction” and he was justified in deleting the addition. We uphold his order and dismiss the appeal of revenue.In the result, appeal of revenue is dismissed.
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