DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(4), MUMBAI vs. SAMAGRA WEALTHMAX PRIVATE LIMITED , MUMBAI

ITA 2165/MUM/2023Status: DisposedITAT Mumbai08 October 2024AY 2018-2019Bench: SHRI PRASHANT MAHARISHI (Accountant Member), SHRI SANDEEP SINGH KARHAIL (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the reserve created on account of amalgamation was capital in nature and not revenue. It further found that no benefit or perquisite arose to the assessee from the scheme of amalgamation, thus Section 28(iv) was not applicable.

What were the facts?

During an amalgamation, the assessee company credited a reserve of ₹149.29 crores. The Assessing Officer treated this amount as income, arguing that no consideration was paid for the assets taken over from the amalgamating company. The assessee contended that the reserve was capital in nature and arose from a tax-neutral amalgamation.

What were the issues?

Whether the reserve created on account of amalgamation is taxable as income under Section 28(iv) of the Income Tax Act, and whether the transaction qualified for tax neutrality under Section 47(vi).

Which sections of the Income-tax Act were involved?

Section 28(iv),Section 56(2)(x),Section 47(vi)

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI SANDEEP SINGH KARHAIL, JM

For Appellant: Shri Rakesh Joshi &, Shri Gaurav Kabra, ARs
For Respondent: Shri Dr. Kishor Dhule – CIT
Hearing: 26.07.2024Pronounced: 08.10.2024

PER PRASHANT MAHARISHI, AM:

01.

This appeal is filed by the Deputy Commissioner of Income Tax, Central Circle-3(4), Mumbai (the Assessing Officer) for Assessment Year (A.Y.) 2018-19 against the appellate order passed by the Commissioner of Income Tax (Appeals)- 51 (learned CIT(A)), Mumbai dated 13.03.2023 wherein the Samagra Walthmax Private Limited; A.Y. 2018-19 appeal filed bySamagra Wealthmax private Limited [ the assessee, also referred to as Samagra] against the assessment order passed by National e-assessment, Delhi (the Assessing Officer) dated 29.04.2021, was partly allowed.

02.

The learned A

The order continues below.

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