9911796707
TMI Blog2004 (9) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to as "the Act") and, particularly, in section 72A has made an order in utter disregard of the decision rendered by this court and also upon a complete non-application of mind. The short facts, as set out in IEL Ltd. v. Union of India [1992] 195 ITR 232 (Delhi) are as under: "Briefly stated, the facts are that a company known as Alkali and Chemicals Corporation of India Ltd. (hereinafter referred to as "ACCI") was carrying on a business of manufacture and sale of polythene, rubber chemicals, paints, etc. The said ACCI was incurring losses especially in the financial years 1980-81 and 1981-82. Both the companies, namely, the petitioner and ACCI decided to amalgamate. Accordingly, on September 30, 1982, the petitioner and ACCI pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to recommend under the provisions contained in section 72A of the Act and it was for the Central Government to pass an appropriate order on such recommendations. Curiously, in the instant case, there is no order made by the Central Government. There is an order dated November 3, 1999, made by the specified authority, a copy of which is produced on record at page 431. It must also be noted that against the aforesaid Division Bench decision a special leave petition was filed on behalf of the respondents. The order made by the Supreme Court is quoted as under: "The special leave petition is dismissed because of not complying with different orders passed by this court from time to time. The question of law, if any, is left open." Thus, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany shall be deemed to be the loss or, as the case may be, allowance for depreciation of the amalgamated company for the previous year in which the amalgamation was effected, and the other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly." "(3) Where a company owning an industrial undertaking or a ship proposes to amalgamate with any other company and such other company submits the proposed scheme of amalgamation to the specified authority and that authority is satisfied, after examining the scheme and taking into account all relevant facts, that the conditions referred to in sub-section(1) would be fulfilled if such amalgamation is effected in accordance with such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendation of the specified authority order. In view of this, the order passed by the specified authority dated November 3, 1999, is quashed and the specified authority is directed to pass an order strictly in accordance with the decision of the Division Bench reported in IEL Ltd. v. Union of India [1992] 195 ITR 232 (Delhi) in the case of the petitioner itself and the Central Government shall also act in consonance with the aforesaid decision. The specified authority is to decide the matter within a period of four months and the Central Government shall take an appropriate decision within a period of two months thereafter. Learned counsel for the petitioner states that the Division Bench while disposing of the petition directed to stay fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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