TMI Blog2022 (8) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... sferor bank. In the absence of any concrete evidence to prove the stand so taken on the side of the appellant / assessee, the Tribunal rightly reversed the orders of the CIT(A) and restored the orders of the assessing officer, in the opinion of this court. As appellant prayed that the appellant / assessee may be granted an opportunity to furnish the required documentary evidence in support of their case that the transferor bank viz., Bank of Thanjavur is still functioning and only a part of the business of the said bank, was merged with the transferee bank; and they claimed depreciation in respect of the assets taken over from the transferor bank on the basis of the valuation determined by the Government as per the scheme of amalgamation, for which, there is no serious objection on the side of the respondent. This court sets aside the order of the Tribunal, which is impugned herein and remand the matter to the Tribunal for fresh consideration. The appellant is directed to produce all the required documents to substantiate their claim to the Tribunal within a period of four weeks from the date of receipt of a copy of this judgment. - Tax Case (Appeal) Nos. 441, 442, 443, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Challenging the orders of assessment passed by the Assessing Officer, the assessee filed statutory appeals before the Commissioner of Income Tax (Appeals) by contending that they claimed depreciation on the assets taken over from the Bank of Thanjavur on the basis of valuation of assets determined by the Government under the scheme of amalgamation with reference to the valuation as its cost of acquisition of the assets; but, the Assessing Officer in the course of assessment, concluded that the value of the assets taken over has to be determined on the basis of the written down value of assets as per the records maintained by the Bank of Thanjavur; and therefore, the orders of the Assessing Officer insofar as it relates to the disallowance of depreciation, are against the provisions of law and contrary to the facts of the case. 4. The appellate authority, on consideration of the grounds raised by the assessee, allowed the appeals and set aside the orders of assessment relating to disallowance of part of the depreciation in respect of the assets taken over from the Bank of Thanjavur, on the premise that the appellant claimed depreciation on such assets as per the cost fixed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years subsequent to the date of taking over, the appellant claimed depreciation on the assets so taken over from the Bank of Thanjavur on the basis of valuation of assets determined by the Government under the scheme of amalgamation with reference to the valuation as its cost of acquisition of the assets; however, the Assessing Officer erroneously concluded that for the purpose of granting depreciation, the value of the assets taken over has to be determined on the basis of the written down value of assets as per the records maintained by the Bank of Thanjavur and not on the basis of the value at which the appellant was directed to take over the assets under the scheme of amalgamation. Therefore, the learned counsel sought to allow these appeals by setting aside the order of the Tribunal. In this regard, the learned counsel placed reliance on a decision of this Court in respect of the appellant's own case in Indian Bank v. Deputy Commissioner of Income Tax [(2013) 213 Taxmann 0389] wherein it was held as follows: 28. In the circumstances, the assessee's tax case on the question of granting deduction on the expenditure made by way of additional interest made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tual cost to the assessee in sub-section (5) of section 10. In our opinion, therefore, a portion of the sum of Rs.3,30,000/- attributable towards the acquisition of the depreciable assets as would be hereafter determined should be included in the actual cost of these assets to the assessee in the year or years of account at the commencement of which the liability to pay it or part thereof had accrued or would accrue . 8. This court considered the submissions made on both sides and perused the materials placed on record. 9. There cannot be any dispute that the Central Government sanctioned a scheme for amalgamation of the appellant bank with Bank of Thanjavur Limited, Thanjavur, by a notification dated 19.02.1990 issued by the Government of India, Ministry of Finance, Department of Economic Affairs. As per the said scheme for amalgamation, the transferee bank shall in consultation with the transferor bank, value the property and assets and reckon the liabilities of the transferor bank in accordance with the provisions stipulated thereunder. Pursuant to the scheme of amalgamation, which came into effect from 20.02.1990, the appellant bank filed their returns of income, inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistrar of Companies. Transferor Bank was not required to prepare balance sheet or profit and loss account or to lay the same before the members or file copies thereof with the Registrar of Companies or to hold any AGM for the purpose of considering the balance sheet and account or for any other purpose or to comply with the provisions of section 159 of the Companies Act, 1956. It was not necessary for the Board of Directors of the transferor bank to meet as required by section 285 of the Act. From this it is quite clear that the transferor bank consequent upon the amalgamation ceased to exist. As such the case of the assessee clearly comes within the ken of Explanation 7 to section 43 (1). In our opinion, AO rightly disallowed the depreciation. Accordingly, we reverse the order of the CIT (A) on this count and restore the order of the AO. In the absence of any concrete evidence to prove the stand so taken on the side of the appellant / assessee, the Tribunal rightly reversed the orders of the CIT(A) and restored the orders of the assessing officer, in the opinion of this court. 11. At this juncture, the learned counsel for the appellant prayed that the appellant / assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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