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2022 (8) TMI 1377 - HC - Income TaxCost of acquisition / Actual cost - Acquired price OR written down value of asset of asset taken over as per the scheme of amalgamation - Depreciation on assets taken over from Bank of Thanjavur Ltd., in pursuant to amalgamation of Bank with assessee’s bank approved by Reserve Bank of India - AO disallowed the depreciation on the ground that the assessee should have taken the written down value of the Bank of Thanjavur, instead of the acquired price of the Indian Bank - HELD THAT:- As after having considered the contention raised on the side of the appellant / assessee that it is not a case of amalgamation as contemplated under Explanation 7 to section 43; the assessee took over only the part of the business of Bank of Thanjavur and the Bank of Thanjavur is still existing and not completely got merged with the assessee bank, the Tribunal was of the view that no evidence was produced to substantiate the said contention and accordingly, rejected the claim of the appellant / assessee, seeking depreciation in respect of the assets taken over from the transferor bank. In the absence of any concrete evidence to prove the stand so taken on the side of the appellant / assessee, the Tribunal rightly reversed the orders of the CIT(A) and restored the orders of the assessing officer, in the opinion of this court. As appellant prayed that the appellant / assessee may be granted an opportunity to furnish the required documentary evidence in support of their case that the transferor bank viz., Bank of Thanjavur is still functioning and only a part of the business of the said bank, was merged with the transferee bank; and they claimed depreciation in respect of the assets taken over from the transferor bank on the basis of the valuation determined by the Government as per the scheme of amalgamation, for which, there is no serious objection on the side of the respondent. This court sets aside the order of the Tribunal, which is impugned herein and remand the matter to the Tribunal for fresh consideration. The appellant is directed to produce all the required documents to substantiate their claim to the Tribunal within a period of four weeks from the date of receipt of a copy of this judgment.
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