Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 972 - GUJARAT HIGH COURTReopening of assessment - scheme of amalgamation questioned - Held that:- On question of claim of depreciation and unabsorbed loss of the amalgamating company upon amalgamation was examined by the Assessing Officer thoroughly. In fact the assessee had made as many as three different representations why such claim should be granted. The Assessing Officer accepted such claim in the order of assessment without making any disallowance. The fact that the Assessing Officer did not make any observations with respect to the same in the order of assessment is of no consequence. Coming to the question of validity of the reasons also, we are inclined to accept the petitioner's contention. Few relevant dates which are not in dispute are that the appointed date as per the scheme of amalgamation was 1.4.2008, effective date is referred to as the date on which the final sanction have been granted which in the present case would be 12.10.2010. The fact that the High Court has sanctioned the scheme was brought to the notice of the Assessing Officer particularly in above referred letter dated 16.9.2010. When once therefore, a scheme has been sanctioned by the High Court, which would relate back to the appointed date and such order is passed before the order of assessment is passed, it cannot be stated that the assessee should be denied the benefit of such development merely on the ground that during the accounting period and when the return was filed, the High Court order sanctioning the scheme was not yet passed. The very effect of the order of High Court sanctioned the scheme relating back to the appointed date would be that for all purposes including for recognising the benefit of unabsorbed depreciation and losses of a merging Company with those of principal company would be available from such date. What would be the effect of the High Court order being passed after assessment is framed is not necessary for us to enter in the present case.- Decided in favour of assessee.
|