TMI Blog2023 (5) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... fairly agreed that the Bank of Thanjavur Ltd., cease to exist consequent upon amalgamation and thus, the findings recorded by the Tribunal in light of provisions of Explanation-7 to Sec.43(1) of the Act, is in accordance with law and the Bank does not want to continue the litigation. There is no error in the findings given by the Tribunal in upholding the action of the AO in allowing depreciation on assets taken over in pursuant to amalgamation of Bank of Thanjavur Ltd., with assessee s bank and thus, we are of the considered view that the decision rendered by the Tribunal in their order does not call for any interference and thus, we reverse the findings of the Ld.CIT(A) and restore the order of the AO on the issue of depreciation on as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ground that the value of assets has been determined by the Government of India for the purpose of taking over the banking business. The AO has allowed depreciation on assets taken over from Bank of Thanjavur Ltd., in pursuant to amalgamation in accordance with provisions of Explanation-7 to Sec.43(1) of the Act, and disallowed excess depreciation claimed by the assessee. The Ld.CIT(A) allowed depreciation claimed by the assessee on the ground that the value of asset has been fixed by the Government of India in pursuant to agreement between the assessee s bank and Bank of Thanjavur Ltd., and thus, Explanation-7 to Sec.43(1) of the Act, has no application. The Revenue filed further appeals against the order of the Ld.CIT(A) before the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the file of the Tribunal is that the Bank of Thanjavur Ltd. is still functioning even after amalgamation and only part of its business of the said bank was merged with the assessee s bank. However, facts remain that after amalgamation, the Bank of Thanjavur Ltd., cease to exist. Therefore, as per the provisions of Explanation-7 to Sec.43(1) of the Act, the assessee can claim depreciation on written down value of assets taken over from the amalgamating bank. Therefore, appeals may be decided in accordance with law. 4. The Ld.DR, on the other hand, submitted that the Tribunal has rightly decided the issue in light of provisions of Explanation-7 to Sec.43(1) of the Act. However, the Hon ble Madras High Court has set aside the issue on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Explanation-7 to Sec.43(1) of the Act. The matter reached to the Tribunal and the Tribunal has concurred with the findings of the AO and held that the transferor bank i.e. Bank of Thanjavur Ltd. consequent upon the amalgamation cease to exist and as such the case of the assessee clearly comes within the scope of Explanation-7 to Sec.43(1) of the Act, and thus, the AO has rightly allowed depreciation on written down value of assets taken over in pursuant to amalgamation. The assessee challenged the order of the Tribunal before the Hon ble Madras High Court and contended that even after amalgamation, the Bank of Thanjavur Ltd., continue to carry on the banking business and thus, provisions of Explanation-7 to Sec.43(1) of the Act, does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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