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2022 (10) TMI 904 - AT - Income TaxAssessment post amalgamation - brought forward losses post amalgamation - scheme of merger/amalgamation was approved by the Hon’ble High Court of Calcutta - accumulated losses of amalgamating companies comprising of unabsorbed short term capital loss, unabsorbed long term capital loss, unabsorbed business loss would belong to the amalgamated company - Whether the provision of Section 72 and 74 would come into play with respect to set off of such accumulated loss of amalgamating companies against respective incomes of the amalgamated company? - HELD THAT:- The scheme once approved is binding on the Income-tax authorities and cannot be disturbed/reconsidered. We also take note of the findings given by the Co-ordinate Bench of ITAT, Kolkata in one of the assessee’s group companies in the case of Electrocast Sales India Ltd. [2018 (3) TMI 473 - ITAT KOLKATA] wherein also similar issue was dealt and held in favour of the assessee. We also concur with the reliance placed by case of Select Holiday Resorts Pvt. Ltd.[2013 (1) TMI 187 - DELHI HIGH COURT] which deals with the similar issue present before us in the appeal. Considering the facts and circumstances of the present case which are similar to those dealt with by the Co-ordinate bench of ITAT, Kolkata and by the Hon’ble Delhi High Court (supra) and the detailed findings given by the Ld. CIT(A), we do not find any reason to interfere with the order of the Ld. CIT(A) on this issue. Accordingly, we allow the adjustment of brought forward business loss against the current year’s business income and also the set off of brought forward capital loss as claimed by the assessee. Thus, the grounds raised by the revenue are dismissed. Accordingly, the appeal of the revenue is dismissed.
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