← All Phrases

“amalgamation”

Mergers & RestructuringSection 2(1B)Section 2(1B)1,456 judgments

The decision most relied on for amalgamation is CIT v. Smifs Securities Ltd. (348 ITR 302), cited in 540 judgments on BharatTax.

Leading authorities on amalgamation

CIT v. Smifs Securities Ltd.
348 ITR 302 · 2012 · Supreme Court
540
citing judgments

Goodwill, whether arising from an amalgamation or a slump sale, is an intangible asset eligible for depreciation under Section 32(1) of the Income-tax Act. While the assessee must prove the existence and valuation of such goodwill, it is recognized as a depreciable asset.

PCIT v. Maruti Suzuki India Ltd.
416 ITR 613 · 2019 · Supreme Court
308
citing judgments

A notice issued under section 148 to a non-existent entity, such as an amalgamating company post-merger, is a substantive illegality, rendering assessment proceedings void ab initio. Participation in such proceedings does not estop the assessee from challenging the validity of the notice.

Spice Infotainment Ltd. v. CIT
247 CTR 500 · 2012 · High Court
114
citing judgments

An assessment framed in the name of a company that has ceased to exist due to amalgamation is invalid, even if the amalgamated company participated in the proceedings. Such a defect cannot be cured under section 292B of the Income-tax Act.

PCIT v. Mahagun Realtors Pvt. Ltd.
443 ITR 194 · 2022 · Supreme Court
95
citing judgments

An assessment framed by the Assessing Officer in the name of a defunct transferor company is valid if the assessee failed to intimate the AO about the merger or amalgamation.

Saraswati Industrial Syndicate Ltd. v. CIT
186 ITR 278 · 1990 · Supreme Court
79
citing judgments

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.

CIT v. Amalgamations Ltd.
238 ITR 963 · 1998 · High Court
73
citing judgments

An assessment order can be deemed erroneous due to the Assessing Officer's non-application of mind or inadequate inquiry, warranting revision under Section 263. However, the Principal Commissioner of Income Tax must establish the order is both erroneous and prejudicial to the revenue, and cannot use this power merely to direct further inquiries without such a finding.

Additional/Joint/Deputy/Assistant Commissioner of Incometax/Income-tax Officer v. Mylan Laboratories Ltd.
137 Taxmann.com 178 · 2022 · High Court
60
citing judgments

Goodwill arising on amalgamation is entitled to depreciation. This principle is established by multiple High Court decisions.

Beverages 331 ITR 192 (Del) B.Raveendran Pillai v. CIT
237 Taxmann 230 · 2016 · High Court
59
citing judgments

Goodwill arising on amalgamation is an intangible asset qualifying for depreciation under Section 32 of the Income Tax Act.

Judgments citing amalgamation

Vodafone India Services Pvt. Ltd, Mumbai vs. DCIT Circle-4(1)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 2241/AHD/2018[2009-10]Status: DisposedITAT Mumbai18 Dec 2023AY 2009-10

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.2241/Ahd/2018 (निर्धारण वर्ा / Assessment Year: 2009-10) Vodafone India Services बिधम/ Dcit, Central Circle- Pvt. Ltd. 4(1)(2) Vs. Indiabulls Finance Centre, B Wing, 2Nd Floor, Room 1201, 12Th Floor, Tower-1, No.209, Pratyaksh Kar Senapati Bapat Road, Bhavan, Near Elphinstone (West), Polytechnic, Ambawadi, Mumbai-400013. Ahmedabad-380015. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacz1849D (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Ms. Fereshte Sethna (Adv) Revenue By: Letter Dated 11.10.2023 सुनवाई की तारीख / Date Of Hearing: 10/10/2023 घोषणा की तारीख /Date Of Pronouncement: 18/12/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Appeal Has Been Preferred By The Assessee Company Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-13, Ahmedabad Dated 31.08.2018, Arising Out Of The Final Assessment Order Passed U/S 143(3)/144C(13) Dated 05.12.2014 For The Assessment Year 2009-10. 2. In The Several Grounds Raised In The Appeal, The Sole Grievance Of The Appellant Is Against The Action Of The Ao/Ld. Cit(A) In Not Allowing The Depreciation Claimed On Goodwill.

For Appellant: Ms. Fereshte Sethna (Adv)For Respondent: Letter dated 11.10.2023
Section 143(1)Section 143(3)Section 144C(15)(b)Section 92C

Smifs Securities Ltd. (supra). In the decided case, the AO had noted that the goodwill had arisen by virtue of scheme of amalgamation and that no amount was actually paid by the assessee on account of goodwill. On appeal, the Ld. CIT(A) is noted to have held that ... assessee had filed copies of the orders of the High Court ordering amalgamation of the companies, pursuant to which the assets and liabilities of amalgamating company were transferred to the appellant for a consideration i.e.; the difference between the cost of an asset and the amount paid constituted goodwill

DCIT-3(4), Mumbai vs. M/S. Ambuja Cements Ltd., Mumbai City

In the result, appeals of the revenue and CO’s of assessee stands dismissed

ITA 2032/MUM/2023[2010-11]Status: DisposedITAT Mumbai11 Dec 2023AY 2010-11

Bench: Shri Aby T. Varkey, Jm & Shri Prashant Maharishi, Am आयकर अपील सं/ I.T.A. No.2031/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2008-09) Dcit-3(4) बिधम/ M/S. Ambuja Cements Ltd 29Th Floor, Center-1, World 3Rd Floor, Elegant Vs. Trade Center, Cuffe Parade, Business Park, Midc Mumbai-400005. Cross, Road B Andheri East, Mumbai-400059. Cross Objection No. 90/Mum/2023 Arising Out Of I.T.A. No.2031/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2008-09) M/S. Ambuja Cements Ltd बिधम/ Dcit-3(4) 3Rd Floor, Elegant Business 29Th Floor, Center-1, Vs. Park, Midc Cross, Road B World Trade Center, Andheri East, Mumbai- Cuffe Parade, Mumbai- 400059. 400005. आयकर अपील सं/ I.T.A. No.2032/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) Dcit-3(4) बिधम/ M/S. Ambuja Cements Ltd 29Th Floor, Center-1, World 3Rd Floor, Elegant Vs. Trade Center, Cuffe Parade, Business Park, Midc Mumbai-400005. Cross, Road B Andheri . East, Mumbai-400059. Cross Objection No. 91/Mum/2023 Arising Out Of I.T.A. No.2032/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) M/S. Ambuja Cements Ltd बिधम/ Dcit-3(4) 3Rd Floor, Elegant Business 29Th Floor, Center-1, Vs. Park, Midc Cross, Road B World Trade Center, Andheri East, Mumbai- Cuffe Parade, Mumbai- 400059. 400005. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacg0569P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Shri Ajay Chandra (Dr) C.O. 90 & 91/Mum/2023 A.Ys. 2008-09 & 2010-11 Ambuja Cements Ltd सुनवाई की तारीख / Date Of Hearing: 11/10/2023 घोषणा की तारीख /Date Of Pronouncement: 11/12/2023 आदेश / O R D E R Per Bench: These Are Appeals Preferred By The Revenue & Respective Cross Objections (‘Co’) Filed By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [In Short ‘Ld. Cit(A)’] Dated 31-03-2023 For Ay 2008-09 & Ay 2010-11 Respectively.

For Appellant: NoneFor Respondent: Shri Ajay Chandra (DR)
Section 115Section 115JSection 143(3)Section 80I

subsequent year. The above principles have been accepted in the undernoted case: ♦ H.A. Shah & Co v. CIT [1956] (30 ITR 618) (Bom.) ♦ Amalgamated Coalfields Ltd. v. Janapada Sabha AIR 1964 SC 1013 ♦ Cruch of South India Trust Association v. Telugu Church Council ... year 2004-05 onwards as it satisfied all the conditions as prescribed u/s 80IA(4). Section 80IA(12) provided that in the scheme of amalgamation or merger, the deduction is available to the amalgamated / resulting company. The relevant provision of sec. 80IA(12) reproduced hereunder:-"Where any undertaking

DCIT-3(4), Mumbai vs. M/S. Ambuja Cements Ltd., Mumbai

In the result, appeals of the revenue and CO’s of assessee stands dismissed

ITA 2031/MUM/2023[2008-09]Status: DisposedITAT Mumbai11 Dec 2023AY 2008-09

Bench: Shri Aby T. Varkey, Jm & Shri Prashant Maharishi, Am आयकर अपील सं/ I.T.A. No.2031/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2008-09) Dcit-3(4) बिधम/ M/S. Ambuja Cements Ltd 29Th Floor, Center-1, World 3Rd Floor, Elegant Vs. Trade Center, Cuffe Parade, Business Park, Midc Mumbai-400005. Cross, Road B Andheri East, Mumbai-400059. Cross Objection No. 90/Mum/2023 Arising Out Of I.T.A. No.2031/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2008-09) M/S. Ambuja Cements Ltd बिधम/ Dcit-3(4) 3Rd Floor, Elegant Business 29Th Floor, Center-1, Vs. Park, Midc Cross, Road B World Trade Center, Andheri East, Mumbai- Cuffe Parade, Mumbai- 400059. 400005. आयकर अपील सं/ I.T.A. No.2032/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) Dcit-3(4) बिधम/ M/S. Ambuja Cements Ltd 29Th Floor, Center-1, World 3Rd Floor, Elegant Vs. Trade Center, Cuffe Parade, Business Park, Midc Mumbai-400005. Cross, Road B Andheri . East, Mumbai-400059. Cross Objection No. 91/Mum/2023 Arising Out Of I.T.A. No.2032/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) M/S. Ambuja Cements Ltd बिधम/ Dcit-3(4) 3Rd Floor, Elegant Business 29Th Floor, Center-1, Vs. Park, Midc Cross, Road B World Trade Center, Andheri East, Mumbai- Cuffe Parade, Mumbai- 400059. 400005. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacg0569P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Shri Ajay Chandra (Dr) C.O. 90 & 91/Mum/2023 A.Ys. 2008-09 & 2010-11 Ambuja Cements Ltd सुनवाई की तारीख / Date Of Hearing: 11/10/2023 घोषणा की तारीख /Date Of Pronouncement: 11/12/2023 आदेश / O R D E R Per Bench: These Are Appeals Preferred By The Revenue & Respective Cross Objections (‘Co’) Filed By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [In Short ‘Ld. Cit(A)’] Dated 31-03-2023 For Ay 2008-09 & Ay 2010-11 Respectively.

For Appellant: NoneFor Respondent: Shri Ajay Chandra (DR)
Section 115Section 115JSection 143(3)Section 80I

subsequent year. The above principles have been accepted in the undernoted case: ♦ H.A. Shah & Co v. CIT [1956] (30 ITR 618) (Bom.) ♦ Amalgamated Coalfields Ltd. v. Janapada Sabha AIR 1964 SC 1013 ♦ Cruch of South India Trust Association v. Telugu Church Council ... year 2004-05 onwards as it satisfied all the conditions as prescribed u/s 80IA(4). Section 80IA(12) provided that in the scheme of amalgamation or merger, the deduction is available to the amalgamated / resulting company. The relevant provision of sec. 80IA(12) reproduced hereunder:-"Where any undertaking

Tech Mahindra Limited (Earlier Known As Mahindra Engineering Services Ltd, Mumbai vs. Dy Commissioner of Income Tax Range 1(3), Mumbai

In the result, the appeal filed by the assessee is partly allowed and the appeal filed

ITA 2463/MUM/2013[2009-10]Status: DisposedITAT Mumbai01 Dec 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Tech Mahindra Limited Dy. Cit, Range 2(2) (Earlier Known As Mahindra Mumbai Engineering Services Limited) Vs. Gateway Building, Apollo Bunder, Mumbai-400 001 Pan/Gir No. Aaacm 3484 F (Assessee) (Revenue) : & Asst. Cit-2(3)(1) Tech Mahindra Ltd. Mumbai (Earlier Known As Mahindra Engineering Services Ltd.) Vs. Mahindra Tower, 1St Floor, B Wing, Dr. G M Bhosale Marg, P K Kurne Chowk, Worli, Mumbai-400 018 Pan/Gir No. Aaacm 3484 F (Revenue) : (Assessee)

For Appellant: Shri Viral ShahFor Respondent: Shri Ashok Kumar Ambastha
Section 10(35)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 250

Ground no. 5 relates to the set off of business loss and unabsorbed deprecation amounting to Rs.2,33,50,059/- related to the amalgamated company which was carry forward as per the provision of section 72A of the Act. It is observed that the assessee had taken over the assets ... Plexion Technologies India Pvt. Ltd. during amalgamation which had unabsorbed depreciation as on the date of the amalgamation. The assessee had claimed depreciation on the higher written down value on the assets taken over during amalgamation. The lower authorities have denied the claim of set off unabsorbed depreciation