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March 2015

Assessment- Amalgamation of companies- Sections 170, 176 and 292B- A. Ys. 2003-04 to 2008-09- Amalgamating company ceases to exist- After amalgamation assessment to be done on the amalgamated company- Order of assessment on amalgamating company is not valid-

By K. B. Bhujle Advocate
Reading Time 1 mins
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CIT vs. Dimention Apparels P. Ltd; 370 ITR 288 (Del):

For the A. Ys. 2003-04 to 2008-09 the assessment was made in the name of the amalgamating company instead of the amalgamated company. The assessee contended that it had ceased to exist from 07-12-2009 by virtue of amalgamation with another company u/s. 391(2) and 394 of the Companies Act, 1956.However, the assessment orders were made. The Tribunal held that the assessment orders were not valid.

On appeal by the Revenue, the Delhi High Court upheld the decision of the Tribunal dismissed the appeal and held that the orders of assessment were invalid.

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