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2013 (10) TMI 228 - HC - Income TaxDepreciation on imported cars - amalgamation / merger - depreciation in respect of a motor car manufactured outside India where such car was acquired by the assessee after 28th February, 1975 but before 1st April, 2001 - Held that:- In terms of the order passed under Section 394 of the Companies Act, 1956, the respondent company acquired the imported motor cars. The cars were not acquired and the respondent assessee was not owner of the motor cars prior to the said date. On merger of the three concerns with the respondent assessee, shares were issued as consideration to the proprietors of the business concerns. The shares issued were consideration for the transfer of the assets. It is immaterial, according to us, whether there was transfer of an undertaking, including the block of assets, which also included the imported motor cars.ts. It is immaterial, whether there was transfer of an undertaking, including the block of assets, which also included the imported motor cars. Reliance has been placed upon the judgment in the case of Singer India Limited versus Chander Mohan Chadha [2004 (8) TMI 386 - SUPREME COURT OF INDIA], wherein it has been held that amalgamation is a blending of two or more existing undertakings into one undertaking, the shareholders of each blending company becoming substantially the shareholders in the company which is to carry on the blended undertakings. There may be amalgamation either by the transfer of two or more undertakings to a new company, or by the transfer of one or more undertakings to an existing company. Strictly "amalgamation" does not, it seems, cover the mere acquisition by a company of the share capital of other companies which remain in existence and continue their undertakings, but the context to which the term is used may show that it is intended to include such an acquisition. Respondent assessee had acquired the asset i.e. imported cars after the cut off date i.e. 1st April, 2001 and, therefore, is entitled to depreciation and the bar/prohibition in clause (a) to proviso to Section 32(1) would not apply – Decided against the Revenue.
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