TMI BlogAllowance of unabsorbed depreciation of amalgamated company in case of amalgamation in the hands of new company (a hospital)X X X X Extracts X X X X X X X X Extracts X X X X ..... Allowance of unabsorbed depreciation of amalgamated company in case of amalgamation in the hands of new company (a hospital) - Commentaries / Editorials Dated:- 27-5-2008 - News - Relevant Provisions of Income Tax Act, 1961 Section 72A - carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc. Section 147 - Assessment or Re-assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Escaped Income Section 149 - Time Limit for issuance of notice u/s 148 Assessment Year - 2000-2001 The present case has two issues: 1. Whether hospital is an industrial undertaking for the purpose of Section 72A 2. Whether AO is justified in issuance of notice u/s 148 dated 30-3-2005 where the income and deduction was shown in the return and the assessment was done. Hono ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rable High Court of Madras dealt both the issues and decided as under: 1. Hospitals are not industrial undertakings for the purpose of Section 72A of the Act to claim the benefit of unabsorbed depreciation of amalgamated company. 2. AO is justified in issuance of notice u/s 148 despite the fact that the regular assessment was made Further, the HC has observed that: This Court wonders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to how such a huge claim of Rs.11,60,29,077/= has 'escaped' the assessment of the Department, leading to illegal availing of set-off by the respondent for the said amount that too when there is no order permitting the respondent to avail such set-off, causing loss of revenue to the State. Therefore, the officers of the appellant at the helm of affairs at the relevant point of time shall be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade responsible for their lethargic attitude in discharging their official duties and for their dereliction in duty. Therefore, we direct the appellants to initiate necessary disciplinary proceedings against the officers who are responsible for availing of such illegal set-off by the respondent leading to loss of revenue to the State and report compliance to this Court, within twelve weeks from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of receipt of a copy of this judgment. (For full text of judgment - visit 2008 -TMI - 4170 - MADRAS HIGH COURT ) - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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