THE INDIAN HOTELS COMPANY LTD,MUMBAI vs. ITO 1(2)(2),

In this case reference was made by the Hon'ble President as per order dated 4th July, 2023 on the draft question that whether in the particular facts and circumstances of the case, the initiation and completion of proceedings under Section 263 of the Income-tax Act, 1961 (the Act) in the name of the Lands End Properties Pvt. Ltd can be said to be valid considering the fact that it is amalgamation with Indian Hotels Company Pvt. Ltd., was approved by the Hon'ble Bombay High Court much prior to the initiation of proceedings under Section 263 of the Act.

The learned Third Member concurred with view taken by the learned Judicial Member that the impugned order passed by the Principal Commissioner of Income Tax in the name of amalgamating company despite specific intimation is invalid in law and deserves to be quashed.

In view of the above decision of the learned Third Member, the impugned order passed under Section 263 of the Act dated 29th March, 2017 is quashed.

In the result, the appeal of the assessee is allowed in terms of ground no.2 decided by the Third Member.

As the revisionary order passed under Section 263 of the Act is quashed all other grounds in the appeal are academic in nature.

In the result, the appeal of the assessee is allowed.