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2015 (3) TMI 507 - DELHI HIGH COURTApplication for approval of Scheme of Amalgamation under section 391 & 394 of the Companies Act - Regional Director observation regarding compliance of As-14 issued by the ICAI , Individual benefits due to cancellation of inter investments including non compliance of AS-7 & As-9 , Non filing of Form 2 (Return of Allotment) & Form 66 (Compliance Certificate). Held that:- In reply to regional director observations, it is submitted that since the Assessee Company is not engaged in the work of carrying out construction contracts and hence revised Accounting Standard-7 is not applicable and it is not bound to follow percentage completion method of accounting. Further, it has also been submitted that provisions of Accounting Standard-7 cannot override the provisions of section 145 of the Income Tax Act in so far as the computation of business income for the purpose of determining assessable income is concerned. It is further submitted that with respect to the Assessee Company, the provisions of Accounting Standard-9 shall be applicable. The Assessee Company has stated that it has been following aforesaid method of accounting on year to year basis. Further submitted that Transferor Company has already filed Form 2 with the Registrar of Companies in respect to Financial Year as on 31.03.2011 and a copy of the same has also been attached.Compliance Certificate under section 383A of the Act of Transferee Company with respect to Financial Year 2012-2013 is already filed and a copy of the same has been attached. In view of the approval accorded by the shareholders of the Petitioner Company, Representation/Report filed by the Official Liquidator and the Regional Director, Northern Region and the submissions of the Petitioner Company, there appears to be no impediment to the grant of sanction to the Scheme of Amalgamation. Consequently, sanction is hereby granted to the Scheme of Amalgamation under Sections 391-394 of the Companies Act, 1956. The Petitioner Companies will comply with the statutory requirements in accordance with law. - Scheme of Amalgamation approved.
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