TMI Blog2018 (6) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Company as per section 72A(4)(a) - Tribunal noted that the statutory provision do not command that in order to avail the benefit of clause (a), separate books of accounts must be maintained. The Tribunal therefore required the AO to examine the explanation of the assessee on merits - Tribunal has not given any such declaration that in case of the assessee, the brought forward losses and unabsorbed depreciation are directly relatable to the Transferred Company, but has merely required the AO to examine such a question in light of the evidence on record - we see no error in the view of the Tribunal - appeal is dismissed. - R/TAX APPEAL NO. 521 of 2018 - - - Dated:- 11-6-2018 - MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The PETIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught forward losses and ubabsorbed depreciation can be directly relatable to the undertakings transferred to the resulting company (i.e. Advantage Retail Pvt Ltd.) in this case, the same is to be carried forward in the hands of resulting company. What it essentially requires is that the explanation of the assessee, on how is it directly relatable to the units transferred to resulting company, is to be examined on merits and, if no defects are found in the same, it is to be accepted. These explanations cannot be brushed aside on the ground that separate books of accounts are not maintained, which is not a condition precedent for invoking section 72A(4)(a) anyway, or that these explanations were not furnished at the time of demerger. Nor, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proportion in which assets of the undertakings have been retained by the Demerged Company and transferred to the Resulting Company which would be allowed to be carried forward and set off in the hands of the Demerged Company or the Resulting Company, as the case may be. 4. The Tribunal is thus correct in commenting that if the brought forward losses and unabsorbed depreciation are directly relatable to the Transferred Company, the same has to be carried forward in the hands of the Resultant Company. This is a purport of clause (a) of subsection (4) of section 72A. The only question in the present case is how would the assessee establish the same. The Tribunal noted and correctly, that the statutory provision do not command that in order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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