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2012 (11) TMI 180 - AT - Income TaxAmalgamation - carry forward and set off of business loss/unabsorbed depreciation relating to earlier assessment years – alleged that sole idea of amalgamation was not the revival of the amalgamating company but was only to take the benefit of carry forward losses - returned income was shown Nil by the assessee company after setting off brought forward losses - A.O. held that such business loss was not eligible for carry forward and set off in subsequent years as the revised return i.e. return for merged entity was filed beyond the statutory limit, hence, violation of provisions of section 80 of the Act. Held that:- Assessee cannot be expected to do an impossible thing i.e. filing of return of amalgamated entity before it is coming into legal existence and, therefore, such return should relate back to the original returns filed by these companies individually. It is not in dispute that original returns have been filed within the time specified u/s 139(1) - there is no default of provisions of section 80 as held by the Assessing Officer - Once the scheme of amalgamation had been sanctioned with effect from a particular date, it is binding on every one including the statutory authorities and the only course open to the Revenue would be to act as per the scheme sanctioned, the tax authorities are bound to take note of the state of affairs of the applicant as on the effective date i.e. Ist Jan 2004 and a revised return filed reflecting the same cannot be ignored on the strength of s. 139(5) - appeals of the Revenue are dismissed-
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