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TMI Blog1983 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred the following two questions under s. 256(1) of the I.T. Act for the opinion of this court : (i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-company is not entitled to carry forward any loss and unabsorbed depreciation allowance of Hindustan Aircraft Ltd. ? (ii) Whether, on the facts and in the circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purposes of this Order, all the profits and/or losses, if any, of the dissolved company for the year 1963-64 and for the period from the 1st day of April, 1964, to September 30, 1964, and the revenue reserves and/or deficits, if any, of the dissolved company, when transferred to the company resulting from the amalgamation under the provisions of this Order, shall respectively form part of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal, on a consideration of the various clauses in the said Government Order and applying the ratio of the decision of the Privy Council in Indian Iron & Steel Company Ltd. v. CIT [1943] 11 ITR 328, held that the Explanation to cl. 3 of the Amalgamation Order could not be taken advantage of by the assessee-company to carry forward the losses and unabsorbed depreciation of Hindustan Aircraft Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance. The principle is that the successor in business must be treated as if it had commenced or set up new business. In Indian Iron & Steel Co. Ltd. v. CIT [1943] 11 ITR 328 (PC) the judicial Committee of the Privy Council observed that when there is an amalgamation of two companies, the unabsorbed depreciation allowance of the one company could not be carried forward by the successor company and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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