TMI Blog1990 (6) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... quential reliefs on the ground that the specified authority, having already given an intimation under section 72A(3) of the Act after being satisfied about the conditions mentioned under section 72A(1), is bound to make a recommendation to the Central Government under section 72A(1) of the Act. It is asserted that, on the basis of the said recommendation, the Central Government is bound to make a declaration under the aforesaid section, regard being had to the facts and circumstances of the case. An attempt is made to make out a case that the refusal of the specified authority to make a recommendation and the refusal of the Central Government to make a declaration are arbitrary, unreasonable, whimsical and capricious. The grievance of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 87, which was duly furnished and further information was sought for by letter dated May 11, 1987, and June 19, 1987. All information was duly supplied as required. Apart from the aforesaid correspondence, the petitioner's representative allegedly met the officer on special duty, but the petitioner is surprised to receive a letter dated May 4, 1988, from the respondents alleging that the information sought for by the letter dated November 10, 1987, has not been furnished by the petitioner and, in the absence of such information, the specified authority has rejected the case of the petitioner. The further grievance of the petitioner is that, after the sanction of the scheme, substantial funds were invested in the unit of the amalgamating comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y order dated July 24, 1989, the Central Government rejected the application of the petitioner-company for a certificate/declaration under section 72A(1) of the Income-tax Act. According to the petitioner-company, the original demand for the assessment year 1985-86 is Rs. 9,70,00,958 and there is an order of rectification lessening the demand to Rs. 9,53,50,958 out of which the petitioner claims to have made part payment of Rs. 4,30,00,000 and there is balance income-tax demand Rs. 8,23,80,958. Section 72A of the Income-tax Act, 1961, envisages provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in certain cases of amalgamation. Section 72A(1) stipulates that "where there has been an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be allowed in the assessment of the amalgamated company unless the following conditions are fulfilled, namely: (i) during the previous year relevant to the assessment year for which such set-off or allowance is claimed, the business of the amalgamating company is carried on by the amalgamated company without any modification or reorganisation or with such modification or reorganisation as may be approved by the Central Government to enable the amalgamated company to carry on such business more economically or more efficiently; (ii) the amalgamated company furnishes, along with its return of income for the said assessment year, a certificate from the specified authority to the effect that adequate steps have been taken by that company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cify for the purposes of this section; (c) 'unabsorbed depreciation' means so much of the allowance for depreciation of the amalgamating company which remains to be allowed and which would have been allowed to the amalgamating company under the provisions of this Act if the amalgamation had not been effected." Looking at the impugned order as communicated by letter dated May 4,1988, copy of which is annexure "T" to the writ petition, it appears that the Officer on Special Duty attached to the Department of Industrial Development, Ministry of Industry, Government of India, has placed on record that the case of amalgamation of Messrs. Karnataka Scooters Ltd. with Messrs. Brooke Bond India Limited under section 72A(1) was considered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in cold storage for any oblique reason. On the contrary, it appears that the petitioner has come to the writ court in hot haste without giving proper opportunity to the specified authority to consider the case of the petitioner in the proper perspective. Regard being had to the materials on record, this court is of the view that the present writ petition is premature and there is nothing for the writ court to interfere in the matter at this stage. The petitioner may very well, pursuant to the impugned order dated May 4, 1988, draw the attention of the specified authority with the request that the requisitions by letter dated November 10, 1986, have either been complied with or will be complied with and, thereafter, the case may be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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