TMI Blog2012 (3) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... 4A – Held that:- Since ITAT has remitted the matter to the A.O. therefore it is directed to A.O. to compute in light of judgement in case of Maxopp Investment Ltd. vs. CIT (2011 - TMI - 208569 - Delhi High Court). - ITA 1222/2011 - - - Dated:- 23-2-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Ms. Suruchi Aggarwal, Sr. Standing Counsel. For Respondent: Mr. V. P. Gupta Mr. Basant Kumar, Advocates. SANJIV KHANNA, J: (ORAL) This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ( Act‟, for short) in the case of SIEL Holdings Ltd., which is now merged with Usha International Ltd. pertains to the assessment year 2007-08. 2. The Assessing Officer had includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i.e. Siel Ltd.) and the same is, accordingly, of Capital Nature. But it has not categorically stated that at no point of time such amounts were not debited in the P L A/c by the erstwhile company i.e. Siel Ltd. is it not a fact that when the liability of even the erstwhile company gets remitted or cessed, the amalgamating company gains by that much amount. In the present case the assessee company has failed to discharge its onus of proving that the liability still exists- no matter even if it was not debited in the present amalgamating company and in a situation where the assessee company does not categorically brings it on record that these were never debited in the amalgamated company (i.e. Siel Ltd.). 3. The CIT (Appeals) upheld the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of business which otherwise would not be his income; (4) such value of the benefit is made chargeable to income tax as the income of the previous year in which such benefit was obtained. In the instant case at the time of amalgamation the appellant has taken over the liability but there is no evidence that it is a liability made out of capital account as claimed by the appellant. The ld. AO has brought on record how such above conditions are satisfied in the present facts of the case and in present circumstances. According to me the AO has brought all material facts to establish that there was cessation of liability within the meaning of Sec. 41(1) and hence such addition is liable to be sustained. 4. ITAT has deleted the said addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid paper-book includes a copy of scheme of amalgamation as well as balance sheet on 31.03.2003 i.e. first year after the assets and liabilities of SIEL Ltd. were transferred to the respondent-assessee. As per the scheme of amalgamation, SIEL Ltd. had transferred the assets in the form of investments, etc. of Rs.35 crores. The liabilities of SIEL Ltd., transferred to and taken over by the respondent-assessee were also Rs.35 crores. This is specifically mentioned in the scheme of amalgamation. However, at the time of making entry in the balance sheet for the year ending 31.03.2003, the investments were enhanced to Rs.35.50 crores and the liabilities were taken at Rs.35 crores and provision for contingency of Rs.50 lakhs was created. This fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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