TMI Blog1994 (11) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the assessee was entitled to relief under section 80J and section 80HH of the Income-tax Act ?" On March 30, 1973, the Dandeli Ferro Alloys Pvt. Ltd., the assessee-company, was incorporated and registered under the provisions of the Companies Act, 1956, and started manufacturing and other commercial activities on June 20, 1973. By a scheme of amalgamation sanctioned by the High Court on December 14, 1973, with effect from October 31, 1973, another company by name Electro Metallurgical Works (Pvt.) Ltd. (for short, referred to as "the amalgamating company") was amalgamated with Dandeli Ferro Alloys Pvt. Ltd. (for short, referred to as "the amalgamated company"). Clause 12 of the scheme of amalgamation provided for the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the amalgamated company that the mere fact that subsequent to the formation of the amalgamated company, the running business and the assets and liabilities of the amalgamating company were amalgamated with the amalgamated company, did not detract from the amalgamated company being entitled to relief under sections 80J and 80HH and allowed the claim of the amalgamated company in respect of both the said assessment years. On a Departmental appeal before the Income-tax Appellate Tribunal, the Tribunal, on the facts of the case, concluded that it was unnecessary to enter into a discussion on the subject whether transfer of assets in favour of the amalgamated company had taken place or not and did not give a final verdict on that issue. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a new business, of plant or machinery of the old business. The transfer, in our opinion, in this context, must mean a transfer of plant or machinery which is essential for the formation of the new industrial undertaking and that must again mean a transfer to the new business of the transferee of any machinery used by the said transferee in his old business. There is nothing on record to show that the amalgamated company was formed as an industrial undertaking as a result of amalgamation with the amalgamating company. On the contrary, the facts on record clearly establish that the amalgamated company was already incorporated and formed and had come into existence on March 30, 1973, and that it became an industrial undertaking carrying on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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