9911796707
TMI Blog2023 (3) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961 (hereinafter the 'Act') vide order dated 30.03.2014. 2. The only issue in this appeal of Revenue is as regards to the order of CIT(A) deleting the disallowance made by AO on depreciation. For this, Revenue has raised following grounds:- 2. The Ld.CIT(A) erred in deleting the disallowance, as the conditions of the proviso to section 32(1)(ii) of the Act were not satisfied in this case. 2.1 The Ld.CIT(A) ought to have appreciated that the depreciation in a case of succession has to be apportioned on the basis of the number of days the asset was used. 3. Brief facts are that the assessee filed its return of income for assessment year 2008-09 on 30.09.2008 and subsequently filed revised return on 29.09.2009 admitting ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the supporting documents to substantiate her claim that all the conditions stipulated u/s 47xiii) are fulfilled. As per the provisions of the IT Act, once a partnership firm is taken over by a limited company, the brought forward loss of the partnership firm should be carried forward to the Limited company. Since the appellant's company has fulfilled all the conditions, the entire brought forward unabsorbed depreciation of Rs. 97.53 lacs including the disallowed portion of 89.27 lacs should be allowed to be brought forward to the appellant's company. In view of the above remarks, the AO is directed to allow the appellant's claim of brought forward unabsorbed depreciation pertaining to the partnership firm as claimed by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation of the predecessor firm or the proprietary concern, as the case may be, shall be deemed to be the loss or allowance for depreciation of thee successor company for the purpose of previous year in which business reorganisation was effected and other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly: Provided that if any of the conditions laid down in the proviso to clause (xiii) or the proviso to clause (xiv) to section 47 are not complied with, the set off of loss or allowance of depreciation made in any previous year in the hands of the successor company, shall be deemed to be the income of the company chargeable to tax in the year in which such condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y consideration or benefit, directly or directly n any form or manner, other than by way of allotment of shares in the company; and The partners of Srinivasa Exports International have been allotted Equity Shares to the extent of their Capital outstanding as on 01.03.2008. Please refer agreement dated: 01.03.2008 and Form 2 filed with Registrar of Companies on 05.03.2008 and audited financials of SEI as on 01.03.2008. (d) the aggregate of the shareholding in the company of the partners of the firm is not less, than fifty per cent of the total voting power in the company and their Shareholding continues to be as such for a period of five years from the date of the succession; Following is the shareholding pattern of the partners of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not point out all the conditions mentioned in section 72A(6) of the Act not met with. 6. We noted that the assessee has filed complete details stating that it had fulfilled all the stipulated conditions u/s.47(iii) of the Act, that all the assets of the partnership firm became the assets of the assessee company from the date of merger. Even all the partners of the firm before the takeover have become shareholders of the assessee company in the same proportion and the partners have not got any additional benefit before the takeover other than the shares allotted in the company in the same proportion which has taken over the firm. We also noted from the chart filed before us i.e., percentage of holding that the aggregate of the shareh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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