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Before: SHRI H.S. SIDHU
Date of Hearing : 15-06-2016 Date of Order : 15-06-2016
O R D E R PER H.S. SIDHU, JM This appeal is filed by the Revenue is directed against the Order dated 30.4.2014 of the Ld. CIT(A)-XI, New Delhi relevant to assessment year 2010-11 on the following grounds:-
1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in admitting the assessee’s appeal.
2. The appellant craves leave to amend modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.
The brief facts of the case are that the assessee filed return declaring an income of Rs. 5,39,450/- on 15.10.2010. The assessee revised its return on 31.3.2012 declaring income of Rs. 35,29,470/-. The return was processed u/s. 143(1) of the Act. The assessee has shown income from Business, other sources etc. Later, the case was selected for scrutiny and notice u/s. 143(2) of the Act was issued on 27.9.2011.
Subsequently, notices u/s. 14291) were also issued. In response thereto Assessee’s Authorised Representative attended the proceedings and filed the details including the books of account alongwith ledgers which have been verified and ledgers of various expenses debited under various head in the P&L A/c have been test checked. Thereafter, the AO completed the assessment u/s. 143 of the I.T. Act, 1961 at an income of Rs. 3529,742/- vide order dated 15.2.2013.
Aggrieved by the aforesaid addition, assessee appealed before the Ld. CIT(A) who vide impugned order dated 30.4.2014 has allowed the appeal of the assessee by observing as under:-
“7.1 The facts of the case and the written submissions of the appellant have been carefully considered. The appellant has not challenged the addition made by the AO on account of disallowance uls 14A of the Act. The only grievance which is raised as a ground of appeal by the appellant is in respect of the credit of TDS of M/s Servel India Pvt. Ltd., (the transferor company) which got amalgamated with the appellant company in terms of amalgamation order of the Hon'ble Delhi High Court. It was argued that the TDS of MIs Servel India Pvt. Ltd. amounting to Rs. 15,57,985/- is appearing in Form No. 26AS in the system of the Department. However, since its PAN is different, the AO has refused to give credit of the same to the appellant company. It is observed that M/s Servel India Pvt. Ltd., (transferor company) got amalgamated into M/s Servel Udyog Pvt. Ltd., (transferee company) vide the scheme of amalgamation duly approved by the Hon'ble Delhi High Court. The appointed date of such scheme was 01.04.2009.
However, the effective date of such amalgamation was the date on which the last, of the approval or sanction specified in the scheme was obtained and certified copies of the order of Hon'ble High Court of Delhi was filed with ROC by both the companies. It has clearly been specified in clause 4.4 of the scheme of amalgamation that the TDS/advance tax paid by the transferor company assessable for the period commencing from the appointed date (01.04.2009) shall be deemed to be TDS/advance tax paid by the transferee company and credit of such TDS/advance tax shall be allowed to the transferee company notwithstanding that the certificates/challans for TDS/advance tax are in the name of the transferor company and not in the name of the transferee company. Since the scheme of amalgamation has already been approved by the Hon'ble Delhi High Court vide their order dated. 10.01.2012 in the Companies Petition No. 485/2010 connected with Companies application (M No. 174/2010), the AO is directed to give credit of TDS in respect of transferor company namely MIs Servel India Pvt. Ltd. Interestingly, the appellant company has taken over the name of transferor company after the amalgamation but its PAN remains that of the transferee company viz. M/s Servel Udyog Pvt. Ltd. This is the precise reason as to why the AO while gave credit of TDS made by M/s Servel Udyog Pvt Ltd. (transferee company) during the intervening period in the computation of tax on total income of differently named company but did not allow the credit of the TDS as requested by the appellant as PAN of appellant company did not match with the transferor company. Therefore, the AO is directed to give credit of such TDS by giving effect of appellate order manually and necessary steps for formalizing the credit of IDS in the system may be taken by the AO in consultation with the departmental authorities in this regard.
8. In the result, the appeal is allowed.”
Against the aforesaid order of the ld. CIT(A), Revenue is in appeal before the Tribunal.
During the hearing, Ld. DR relied upon the order passed by the AO and reiterated the contentions raised in the grounds of appeal by the Department.
In this case, Notice of hearing to the assessee was sent by the Registered AD post, in spite of the same, assessee, nor its authorized representative appeared to prosecute the matter in dispute, nor filed any application for adjournment. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, I am of the view that no useful purpose would be served to issue notice again and again to the assessee, therefore, I am deciding the present appeal exparte qua assessee, after hearing the Ld. DR and perusing the records.
I have heard both the parties and perused the records, especially the order of the Ld. First Appellate Authority. After perusing the impugned order of the Ld. CIT(A), I find that Ld. CIT(A) has passed a well reasoned and speaking order because assessee has not challenged the addition made by the AO on account of disallowance uls 14A of the Act.
The only grievance is in respect of the credit of TDS of M/s Servel India Pvt. Ltd., (the transferor company) which got amalgamated with the assessee company in terms of Hon’ble Delhi High Court amalgamation order dated 10.1.2012 in the Companies Petition No. 485/2010 connected with Companies Application (MA 174/2010). Therefore, the ld. CIT(A) has rightly directed the AO to give credit of such TDS by giving effect of appellate order manually and necessary steps for formalizing the credit of TDS in the system may be taken by the AO, in consultation with the departmental authorities in this regard, which does not need any interference on my part, hence, I uphold the order of the Ld. CIT(A) and dismiss the Appeal filed by the Revenue.
In the result, the appeal filed by the Revenue stands dismissed.