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2019 (1) TMI 1599 - ITAT AHMEDABADDisallowance of business loss and unabsorbed depreciation of amalgamated company (Dolphin Laboratories) - Scheme of amalgamation conceived - “cut off date” OR “appointed date” OR “date of amalgamation” - HELD THAT:- As per the scheme of merger, DLL(Dolphin Laboratories Ltd) was transferred fully to the assessee company against which the shareholders of DLL were allotted preference shares of the transferee company. It was an amalgamation as per the Income Tax Act, 1961 therefore the assessee is entitled to set off of brought forward losses and depreciation of amalgamating company as per the provisions of section 72A. The purpose of the cut of date of 30-09-2006 was the time limit for submission of objections/suggestions in respect of relief and concession. It is further noticed that the assessee company has also fulfilled all the conditions mentioned in Rule 9C of the I.T. Rule. The assessee has also submitted complete information in Form No. 62. The assessing officer has not disputed the non-fulfillment of any conditions after verification of the Form No. 62 filed by the assessee. We observe that the appointed date 01- 01-2006 is the date on which the assets and liabilities of the transferer company vest in transferee company. The assessee has made compliance to the conditions stipulated in Rule 9C of the I.T. Rule which is the requirement of section 72A. After considering the above facts and circumstances, we are inclined with the decision of the CIT(A) that the date of amalgamation is 01-01- 2006, therefore, the brought forward losses and the unabsorbed depreciation have been rightly set off in assessment year 2006-07. Accordingly this ground of appeal of the Revenue is dismissed. Disallowance of sale promotion expenses - CIT(A) has deleted the said addition on the ground that in the aforesaid order u/s. 154 the addition was already made - HELD THAT:- It is noticed the aforesaid addition on account of disallowance of sale promotion expenses was made in the assessment order on 28-01-2013 u/s. 143(3)/153A/263 by the assessing officer stating that disallowance on sale promotion expenses was made as mentioned in the order u/s. 154. CIT(A) has deleted the said addition on the ground that in the aforesaid order u/s. 154 the addition of ₹ 22,95,000/- was already made. Before us the revenue has not disproved the aforesaid material facts, therefore, we do not find any error in the decision of ld. CIT(A). Accordingly, this ground of appeal of revenue is also dismissed.
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