Saraswati Industrial Syndicate Ltd. v. CIT

186 ITR 278Supreme Court of India1990#1437 most cited

What is Saraswati Industrial Syndicate Ltd. v. CIT authority for?

Upon amalgamation, the amalgamating company ceases to exist in the eyes of the law. Therefore, any assessment or proceeding initiated against a non-existent amalgamating company is invalid as it is no longer considered a 'person' under the Income-tax Act.

79

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

Saraswati Industrial Syndicate Ltd. v. CIT · amalgamation · non-existent entity assessment · transferor company ceases to exist · Section 2(31) person · Section 147 · Section 148 · assessment validity · Companies Act scheme of arrangement · post-amalgamation assessment

Also reported as

53 Taxmann 92

Sections most often in play

Section 143(3)Section 147Section 148Section 144Section 292BSection 250Section 148ASection 151
Read the full judgment

Issues it is cited on

transferor companysection 170section 39section 2(31)section 2(1a)scheme of arrangementtransferee companyresulting companyamalgamationsection 292bdoctrine of mergerfaceless assessment scheme

Judgments citing Saraswati Industrial Syndicate Ltd. v. CIT

DCIT, CC-4(4), Kolkata vs. M/S Mani Square Ltd., Kolkata

In the result, both the appeals of the revenue are dismissed

ITA 1053/KOL/2015[2006-2007]Status: DisposedITAT Kolkata15 Nov 2017AY 2006-2007

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 144Section 147Section 148Section 245C(1)Section 245FSection 292BSection 68Section 69

…Mani Square Ltd., AY, 2006-07 आयकर अपील"य अधीकरण, "यायपीठ – “D” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH: KOLKATA (सम") "ी ऐ. ट". वक", "यायीक सद"य एवं डॉ. अजु"न लाल सैनी, लेखा सद"य) [Before Shri A. T. Varkey, JM & Dr. A. L. Saini, AM] I.T.A. No. 1052/Kol/2015 Assessment Year: 2006-07 Deputy Commissioner of Income-tax, Vs. M/s. Mani Square Ltd., (successor Central Circle-4(4), Kolkata company of M/s. Alex Merchants Pvt. Ltd. ) (PAN: AACCA2458B) Appellant Respondent & I.T.A. No. 1053/Kol/2015 Assessment Year: 2006-07 Deputy Commissioner of Income-tax, Vs. M/s. Mani Square Ltd. (successor Central…

DCIT, CC-4(4), Kolkata vs. M/S Mani Square Ltd., Kolkata

In the result, both the appeals of the revenue are dismissed

ITA 1052/KOL/2015[2006-2007]Status: DisposedITAT Kolkata15 Nov 2017AY 2006-2007

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 144Section 147Section 148Section 245C(1)Section 245FSection 292BSection 68Section 69

…Mani Square Ltd., AY, 2006-07 आयकर अपील"य अधीकरण, "यायपीठ – “D” कोलकाता, IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH: KOLKATA (सम") "ी ऐ. ट". वक", "यायीक सद"य एवं डॉ. अजु"न लाल सैनी, लेखा सद"य) [Before Shri A. T. Varkey, JM & Dr. A. L. Saini, AM] I.T.A. No. 1052/Kol/2015 Assessment Year: 2006-07 Deputy Commissioner of Income-tax, Vs. M/s. Mani Square Ltd., (successor Central Circle-4(4), Kolkata company of M/s. Alex Merchants Pvt. Ltd. ) (PAN: AACCA2458B) Appellant Respondent & I.T.A. No. 1053/Kol/2015 Assessment Year: 2006-07 Deputy Commissioner of Income-tax, Vs. M/s. Mani Square Ltd. (successor Central…

M/S. Noida Customer Operation (P) Ltd., New Delhi vs. ITO, New Delhi

ITA 5191/DEL/2011[2007-08]Status: DisposedITAT Delhi22 Sept 2017AY 2007-08

Bench: Shri B.P. Jain & Shri Sudhanshu Srivastava

For Appellant: Shri Shubham Gupta, AdvFor Respondent: Shri Sanjay Kumar Yadav, Sr. DR
Section 143(3)Section 144C(6)Section 92CSection 92C(2)

…e assessee contends that no question of law arises for consideration. It submits that the text and phraseology of Sections 170 (1) and (2) do not support the revenue's arguments. The assessee further relies on Saraswati Industrial Syndicate Ltd. v. CIT [1990] 186 ITR 278/53 Taxman 92(SC) in support of its contentions and the findings of the tax authorities below, i.e. the CIT (A) and the ITAT. Spice Entertainment Ltd. v. CIT [ITA No. 475 of 2011], decided by a Division Bench of this Court, as well as an earlier decision in CIT v. Vived Marketing Servicing (P.) Ltd. [IT Appeal No. 273 of 2009] were relied on by th…

DCIT, Chennai vs. M/S. Henkel India Ltd., Mumbai

In the result, the appeal filed by the Revenue is stands dismissed and the Cross-Objection filed by the assessee in Appeal No

ITA 2054/CHNY/2016[2010-11]Status: DisposedITAT Chennai20 Jun 2017AY 2010-11

Bench: Shri George Mathan & Shri S. Jayaraman

For Appellant: Ms.Priyanka Jain, AdvFor Respondent: Mr.M.N.Maurya, CIT
Section 143(3)Section 271(1)(c)

…der. It was a submission that the AO had held that the penalty order u/s.271(1)(c) was null and void by following the decision of the Hon’ble Supreme Court in the ITA No.2054 & CO No.120/Mds/2016 :- 4 -: case of Saraswati Industrial Syndicate Ltd. v. CIT: 186 ITR 278 and the decision of the Hon’ble Delhi High Court in the case of CIT-III v. Dimension Apparels (P) Ltd: [2015] 370 ITR 288 (Delhi) and the decision of the Hon’ble Jurisdictional High Court of Madras in the case of CIT v. Express Newspapers Ltd: [1960] 40 ITR 38 and also the decision of the Hon’ble Jurisdictional High Court of Madras in the cas…

Xenial Investment Pvt. Ltd, Through I.P. India Pvt. Ltd (Now Known As Adhunik Technology Pvt. Ltd.), New Delhi vs. ACIT, New Delhi

ITA 2305/DEL/2016[2004-05]Status: DisposedITAT Delhi25 May 2017AY 2004-05

Bench: Shri H.S.Sidhu & Shri Prashant Maharishixenial Investment Pvt. Ltd, Vs. Acit, Though Ip India Pvt. Ltd, Central Circle-18, (Now Known As Adhunik Technology New Delhi Pvt.Ltd, C/O. Kapil Goel Adv, F-26/124, Sector-7, Rohini, New Delhi Pan:Aabci0760K (Appellant) (Respondent) Bma Capfin Ltd, Though Ip India Pvt. Ltd, Acit, Vs. (Now Known As Adhunik Technology Pvt. Central Circle-18, Ltd), New Delhi C/O. Kapil Goel, Adv F-26/124, Sector-7, Rohini, New Delhi Pan:Aabci0760K (Appellant) (Respondent)

For Appellant: Sh. Kapil Goel, AdvFor Respondent: Sh. NK Bansal, Sr. DR
Section 115JSection 143(3)Section 254Section 68

…e assessee contends that no question of law arises for consideration. It submits that the text and phraseology of Sections 170 (1) and (2) do not support the revenue's arguments. The assessee further relies on Saraswati Industrial Syndicate Ltd. v. CIT [1990] 186 ITR 278/53 Taxman 92(SC) in support of its contentions and the findings of the tax authorities below, i.e. the CIT (A) and the ITAT. Spice Entertainment Ltd. v. CIT [ITA No. 475 of 2011], decided by a Division Bench of this Court, as well as an earlier decision in CIT v. Vived Marketing Servicing (P.) Ltd. [IT Appeal No. 273 of 2009] were relied on by th…

DCIT Cen Cir 4(4) Cen RG 4, Mumbai vs. Nahar Enterprises, Mumbai

ITA 3574/MUM/2015[2012-13]Status: DisposedITAT Mumbai07 Apr 2017AY 2012-13

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

DCIT Cen Cir 4(4) Cen RG 4, Mumbai vs. Nahar Enterprises, Mumbai

ITA 3573/MUM/2015[2011-12]Status: DisposedITAT Mumbai07 Apr 2017AY 2011-12

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

DCIT Cen Cir 4(4) Cen RG 4, Mumbai vs. Nahar Enterprises, Mumbai

ITA 3572/MUM/2015[2010-11]Status: DisposedITAT Mumbai07 Apr 2017AY 2010-11

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

Nahar Enterprises, Mumbai vs. DCIT (OSD) Cen RG 7, Mumbai

ITA 2855/MUM/2015[2012-13]Status: DisposedITAT Mumbai07 Apr 2017AY 2012-13

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

Nahar Enterprises, Mumbai vs. DCIT (OSD) Cen RG 7, Mumbai

ITA 2854/MUM/2015[2011-12]Status: DisposedITAT Mumbai07 Apr 2017AY 2011-12

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

Nahar Enterprises, Mumbai vs. DCIT (OSD) Cen RG 7, Mumbai

ITA 2853/MUM/2015[2010-11]Status: DisposedITAT Mumbai07 Apr 2017AY 2010-11

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Sarvshree Vimal Punmiya, KetanFor Respondent: Shri Anand Mohan
Section 143(3)Section 801B(10)Section 80I

…er of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in income-tax can to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (1990) 88 CTR (SC) 61 : (1990) 186 ITR 278 (SC) the legal position is explained in the following terms : "The question is whether on the amalgamation of the Indian Sugar Company with the appellant company, the Indian Sugar Company continued to have its entity and was alive for the purposes of s. 41(1) of the Act ? The amalgamation of the two companies was effected under the order of the H…

M/S. Aztecsoft (Now Merged With Mindtree Ltd), Bangalore vs. DCIT, Bangalore

In the result, the appeal of the assessee is allowed for statistical purpose

ITA 1434/BANG/2010[2006-07]Status: DisposedITAT Bangalore31 Mar 2017AY 2006-07

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: Shri. Chytanya K. K, AdvocateFor Respondent: Smt. Preethi Garg, CIT-DR
Section 10ASection 144CSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER IT(TP)A No.1434/Bang/2010 Assessment year : 2006-07 M/s. Mindtree Ltd., Deputy Commissioner of (Previously known as M/s. Income Tax, Aztecsoft Ltd., now merged with Vs. Circle-12(1), M/s. Mindtree Ltd.,), Bengaluru. Global Village, RVCE Post, Mysore Road, Bengaluru-560 059. PAN: AABCA 2122R APPELLANT RESPONDENT Assessee by : Shri. Chytanya K. K, Advocate Revenue by : Smt. Preethi Garg, CIT-DR Date of hearing : 03.01.2017 Date of : 31.03.2017 Pronouncement O R D E…

DCIT, New Delhi vs. M/S. Satwant Export Pvt. Ltd., New Delhi

In the result, all the six Appeals filed by the Revenue stand dismissed

ITA 5963/DEL/2013[2003-04]Status: DisposedITAT Delhi29 Mar 2017AY 2003-04

Bench: Or During The Course Of The Hearing Of The Appeal.

For Appellant: Shri B.K. Dhingra, CAFor Respondent: Shri S.S. Rana, CIT(DR)
Section 69C

…aw, a number of cases the Hon’ble Apex Court held that assessment upon a dissolved company is impermissible as there is no provision in the I.T. Act to make an assessment upon a non-existent company. In the case of Saraswati Industrial Syndicate Ltd. vs. CIT (186 ITR 278), the legal position was explained. In amalgamation two or more companies are fused into one by merger or by taking over by another. The amalgamation is a blending of two or more existing undertaking into one undertaking, and the share holders of each blending company become substantially the share holders in the company which is to carry on the…

ITO, Ooty vs. The Kilkotagiri Tea & Coffee Estates Company Ltd., Nilgiris

In the result, the appeal of the revenue stands dismissed

ITA 380/CHNY/2016[2012-13]Status: DisposedITAT Chennai23 Nov 2016AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singh

For Appellant: Shri Supriyo Pal, JCITFor Respondent: Shri K.Raghu, C.A
Section 143(3)Section 159

…आयकर अपील"य अ"धकरण,‘ए’/ ‘बी’/’सी’/’डी’"यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI "ीएन.आर.एस. गणेशन,"या"यकसद"य एवं "ी "ड.एस. सु"दर "संह,लेखा सद"य केसम" BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.380/Mds/2016 "नधा"रण वष" /Assessment Year : 2012-13 The Income Tax Officer, The Kilkotagiri Tea & Coffee Ward -2, v. Estates Company Ltd., Income Tax Office, Kilkotagiri Estate, Ooty. Kilkotagiri Post, Nilgiris – 643 216. PAN: AAACT 7563 J (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri Supriy…

Orbit Corporation Ltd ( Formerly M/S. Orbit Buildcon & Realty P.Ltd Since Merged With M/S, Orbit Corporation Ltd), Mumbai vs. DCIT Cen Cir 47, Mumbai

In the result, all the three appeals filed by the assessee are allowed

ITA 2411/MUM/2013[2007-08]Status: DisposedITAT Mumbai21 Mar 2016AY 2007-08
For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ravindra Sindhu, DR
Section 132Section 143(3)Section 153A

…of the Act with OCL, and once the company merged with another company, the former got dissolved and ceased to exist. For this proposition, he relies on the judgment of the Hon’ble Supreme Court in the case of Saraswathi Industrial Syndicate Ltd vs. CIT [1990] 186 ITR 278 (SC). Relying on another judgment of the Hon’ble Supreme Court in the case of General Radio and Appliances Co. Ltd vs. M.A. Khader [1986] 60 Comp Case 1013, Ld Counsel for the assessee submitted that after amalgamation of two companies, the transferor company (ie amalgamating company) ceases to have any identity and it is the amalgamated company…

Adobe Software India Pvt. Ltd., Noida vs. JCIT, Noida

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

ITA 2454/DEL/2013[2006-07]Status: DisposedITAT Delhi20 Jan 2016AY 2006-07

Bench: Smt. Diva Singh, Jm & Sh. N. K. Saini, Am Ita No. 2454/Del/2013 : Asstt. Year : 2006-07 Adobe Software India Pvt. Ltd. Vs Joint Commissioner Of Income (Now Amalgamated With Adobe Tax, Range-1, Systems India Pvt. Ltd.), Plot No. Noida 1-1A, City Centre, Sector-25A, Noida (U.P)-201301 (Appellant) (Respondent) Pan No. Aacca2982J Assessee By : Sh. Deepak Chopra & Rohan Khare, Advs. Revenue By : Sh. Amrendra Kumar, Cit Dr Date Of Hearing : 27.10.2015 Date Of Pronouncement : 20.01.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Deepak Chopra & Rohan Khare, AdvsFor Respondent: Sh. Amrendra Kumar, CIT DR
Section 143(3)Section 144CSection 153Section 170Section 292B

…d 20.02.2015 " M/s Roopali Marketing Ltd. Vs ITO (ITA No. 98/Del/2011) order dated 21.11.2014 " Spice Infotainment Ltd. Vs CIT (247 CTR 500) (Del) " CIT Vs Dimension Apparels (ITA 327 of 2014 dated 8.7.2014) (Delhi HC) " Saraswati Industrial Syndicate Vs CIT (186 ITR 278) (SC) 7. In her rival submissions the ld. DR submitted that the assessee filed its e-return in Bangalore on 23.11.2006, the notice u/s 143(2) of the Act dated 16.10.2007 was issued to the assessee i.e. M/s Adobe Software India Pvt. Ltd. and at that time no proof of intimation of scheme of merger was available to the then jurisdictional Assessing…

Commissioner of Income Tax –II vs. M/S Micron Steels Pvt. Ltd

ITA/19/2014HC Delhi11 Feb 2015
Section 170Section 391

…spect of a nonexistent company, due to the amalgamation order, would render assessment in the name and in respect of the original assessee company, a nullity. In Spice Entertainment (supra) after referring to Saraswati Industrial Syndicate Ltd. Vs. CIT, 186 ITR 278, this Court held as follows: 9. The Court referred to its earlier judgment in General Radio and Appliances Co. Ltd. Vs. M.A. Khader (1986) 60 Comp Case 1013. In view of the 2015:DHC:1375-DB ITA Nos. 19-24/2014 Page 5 aforesaid clinching position in law, it is difficult to digest the circuitous route adopted by the Tribunal holding t…

Commissioner of Income Tax vs. M/S.Bhuwalka Steel Industries Ltd

The appeal of the revenue is dismissed

ITA/922/2006HC Karnataka03 Dec 2012

Bench: B.MANOHAR,D.V.SHYLENDRA KUMAR

Section 148Section 2Section 260ASection 80Section 801

…income of the erstwhile company namely M/s AA Alloys Ltd. In support of such submissions, Sri Kamaladhar has placed reliance on the decision of the Supreme Court in the case of SARASWATI INDUSTRIAL SYNDICATE LTD vs COMMISSIONER OF INCOME TAX [(1990) 186 ITR 278]. 10. However, learned standing counsel also brought to our notice and fairly submits that the Madras High Court 10 in the case of COMMISSIONER OF INCOME TAX vs SILICAL METALLURGIC LTD [(2010) 324 ITR 29] has taken a view that amalgamation is not transfer within the meaning of Section 2(47) of the Act while it was examining the…

Spice Enfotainment Ltd

ITA - 475 / 2011HC Delhi03 Aug 2011
Section 143Section 292B

…uence provided in law, in number of cases, the Supreme Court held that assessment upon a dissolved company is impermissible as there is no provision in Income-Tax to make an assessment thereupon. In the case of Saraswati Industrial Syndicate Ltd. Vs. CIT, 186 ITR 278 the legal position is explained in the following terms: “The question is whether on the amalgamation of the Indian Sugar Company with the appellant Company, the Indian Sugar Company continued to have its entity and 2011:DHC:3905-DB ITA 475/2011 & ITA 476/2011 Page 8 of 13 was alive for…