4 Principal Commissioner of Income Tax (Central) – 2 vs. Mahagun Realtors (P) Ltd. Civil Appeal No. 2716 of 2022 (Arising out of Special Leave Petition (C) No. 4063 of 2020) Date of order: 5th April, 2022
Effect of amalgamation - When two companies are merged and are so joined, as to form a third company or one is absorbed into one or blended with another, the amalgamating company loses its entity – However, whether corporate death of an entity upon amalgamation per se invalidates an assessment order ordinarily cannot be determined on a bare application of Section 481 of the Companies Act, 1956 (and its equivalent in the 2013 Act), but would depend on the terms of the amalgamation and the facts of each caseThe Respondent-Assessee company, Mahagun Realtors (P) Limited (hereafter variously referred to as ‘MRPL’, ‘the amalgamating company’ or the ‘transferor company’), was engaged in the development of real estate and had executed one residential project under the name ‘Mahagun Maestro’ located in Noida, Uttar Pradesh. MRPL amalgamated with Mahagun India Private Limited (hereinafter ‘MIPL’) by virtue of an order of the High Court (dated 10th September, 2007). In terms of the order and provisions of the Companies Act, 1956, the amalgamation was with effect from 1st April, 2006.
On 20th March, 2007, survey proceedings were conducted in respect of MRPL, during the course of which some discrepancies in i
