TMI Blog2022 (12) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... k Exchange on the date of sale was only Rs.58/- per share whereas the assessee has sold the shares at much higher price of Rs.200/- per share. Merely because this transaction had resulted in long term capital loss which had also admittedly arose only due to the benefit of indexation which is statutorily available to the assessee, the Revenue in the instant case is trying to treat the entire transaction as a colourable device and making the assessee act as a conduit to enable the merged entity to have the benefit of carry forward of loss. All these allegations are made by the Ld.AO absolutely without any basis. This is a classic case where the Ld.AO had denied the benefit which is statutorily available to the assessee as per the Act. In a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by : Shri Vimal Punmiya Revenue by : Ms. Sujata Iyengar , Sr. DR ORDER PER M. BALAGANESH ( A. M ) : This appeal in ITA No. 6473/Mum/2018 and cross objection in C.O. No. 227/Mum/2019 for A.Y.2011-12 arise out of the order by the Ld. Commissioner of Income-tax-20, Mumbai dated 07/06/2018 (ld.CIT(A) in short) against the order of assessment order passed u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/12/2016 by the ld. Asst. Commissioner of Income Tax-12(2)(2), Mumbai (hereinafter referred to as ld. AO). ITA No. 6473/Mum/2018 Revenue Appeal Asst Year 2011-12 2. The only effective issue to be decided in the appeal of the Revenue is as to whether the Ld.CIT(A) was jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d u/s 148 was not a valid notice inasmuch as it was issued to the person who had ceased to exist. The Ld. AO disposed of the objections of the assessee by the order dated 10.11.2016. Thereafter the Intelnet Global Services Pvt Ltd. filed another letter dated 08.12.2016 raising fresh objections to the reopening u/s 148 of the Act. Eventually, the Ld. AO passed an order u/s 143(3) r.w.s. 147 of the Act determining the total income of the assessee at Rs.3,09,659/-. 6. We find that assessee is engaged in the business of IT IT enabled services. The Ld.AO observed that assessee on 30/7/2010 sold 6,44,285 equity shares in M/s Sparsh BPO Services Pvt Ltd for Rs.12,88,57,000/-. These shares were purchased by the assessee on 7/7/2008 for Rs.12,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date of sale of shares 30-7-2010 Selling price (A) 12,88,57,000 Date of purchase of shares 7-7-2008 Purchase cost (B) 12,88,57,000 Index factor for AY 2009-10 (C) 582 Index factor for AY 2011-12(D) 711 Indexed cost of (E) 15,74,18,088 Long term Capital Loss (A-E) (2,85,61,088) 8. The assessee had submitted that the shares of M/s Sparsh BPO Services Pvt Ltd were sold at Rs.200 per share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g term capital loss which had also admittedly arose only due to the benefit of indexation which is statutorily available to the assessee, the Revenue in the instant case is trying to treat the entire transaction as a colourable device and making the assessee act as a conduit to enable the merged entity to have the benefit of carry forward of loss. All these allegations are made by the Ld.AO absolutely without any basis. In fact, this is a classic case where the Ld.AO had denied the benefit which is statutorily available to the assessee as per the Act. In any case, the scheme of merger had already contemplated these transactions of loss on shares by including the same in the scheme and had also considered the loss incurred by the transferor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved, it implied that the merger scheme had been done after duly considering the representations from the. Government. The Department had not filed any appeal under section 391(7) of the Companies Act, 1956 against the order of sanction of the amalgamation by the High Court. Therefore it would be clearly barred In/ the doctrine of acquiescence and estoppel. The. accumulated losses of the amalgamating companies, comprising unabsorbed short term capital loss of Rs. 10,26,44,123, unabsorbed long-term capital loss of Rs. 6,34,784 and unabsorbed business loss of Rs. 6,63,574, would belong to the amalgamated company pursuant to paragraph 10(iii) of the scheme of amalgamation which was approved by the High Court. Since the losses belonged to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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