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2013 (2) TMI 128 - HC - Income Tax
Scheme of amalgamation - transferor company challenge notice u/s 142(1) as it no longer survives & the question of assessing such company for the purpose of income tax would not possible - appointed date v/s effective date - Held that:- As it emerges from the record that the transferor company had merged in transferee company with effect from 1.4.09. The High Court did not provide for any modification in the appointed date as envisaged in the merger scheme itself. In that view of the matter, as held by the Supreme Court in the case of Marshall Sons and Co. (India) Ltd v. I.T.O., [1996 (11) TMI 6 - SUPREME COURT] the effective date for amalgamation would be the date as envisaged under the scheme.
Thus no hesitation in holding that the transferor company would no longer be amenable to assessment proceedings for the assessment year 2010-11. The notice for producing documents for such assessment would, therefore, be invalid. Reference of the Revenue to clause 6 of the scheme is wholly misplaced. Clause 6 refers to two dates, namely, appointed date and the effective date. It only clarifies that the scheme shall be operative from the appointed date, but shall become effective from the effective date. This, in our opinion, does not alter the position of law - against revenue.