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“scheme of arrangement”

Mergers & RestructuringSection 391-394Section 391-394328 judgments

The decision most relied on for scheme of arrangement is Spice Infotainment Ltd. v. CIT (247 CTR 500), cited in 114 judgments on BharatTax.

Leading authorities on scheme of arrangement

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.

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. Intel Technology India (P.) Ltd.
380 ITR 272 · 2016 · High Court
45
citing judgments

When an amalgamating company ceases to exist due to a scheme of arrangement or merger, any subsequent assessment or action under the Income-tax Act initiated against that non-existent entity is void ab initio, as it is not a 'person' under Section 2(31).

CIT v. Smifs Securities Ltd.
87 Taxmann.com 82 · 2017 · High Court
38
citing judgments

Depreciation is allowable on goodwill as an intangible asset under Section 32(1)(ii) when it arises from a scheme of amalgamation or similar corporate restructuring.

Rustagi Engineering Udyog (P.) Ltd. v. Deputy Commissioner of Income-tax
382 ITR 443 · 2016 · High Court
25
citing judgments

An amalgamation that has been brought to the notice of the Assessing Officer is void ab initio, meaning it is invalid from the beginning.

DCIT v. Toyo Engineering India ltd.
33 Taxmann.com 560 · 2013 · Reported
22
citing judgments

Depreciation is not allowed on goodwill if it arises from book entries and has no identifiable cost of acquisition. This applies even when goodwill is acquired as part of a scheme of arrangement or amalgamation.

Dalmia Power Ltd. v. ACIT
420 ITR 339 · 2020 · Supreme Court
21
citing judgments

Once a scheme of arrangement or amalgamation has been sanctioned by a competent court and due notice has been issued to the income tax department, the binding nature of the scheme cannot be challenged during its implementation, as it attains statutory force.

Killick Nixon Ltd. v. Deputy Commissioner of Income-tax
20 Taxmann.com 703 · 2012 · High Court
20
citing judgments

Transactions lacking commercial substance, such as circular share transactions designed to generate artificial capital losses, are not genuine and may be disregarded by tax authorities.

Judgments citing scheme of arrangement

M/S Novateur Electricals and Digital Systems Pvt Ltd. (As Successor of Legrand (India) Private Limited), Mumbai vs. DCIT Range 2(3)(1), Mumbai

ITA 1800/MUM/2023[2004-05]Status: DisposedITAT Mumbai05 Jan 2024AY 2004-05

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.1800/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2004-05) Novateur Electrical & बिधम/ Dcit, Range-10(3)(1) Digital Systems Pvt. Ltd. Room No.552, Aaykar Vs. (As Successor Of Legrand Bhavan, M. K. Road, (India) Pvt. Ltd.) Mumbai-400020. 61/62 Kalpatru Square, 6Th Floor, Off Andheri Kurla Road, Mumbai-400059. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aacce4671N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Nikhil Tiwari Revenue By: Shri H. M Bhat (Sr. Dr) Shri Ashok Kumar Ambastha (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 17/10/2023/(22.12.2023) घोषणा की तारीख /Date Of Pronouncement: 05/01/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Company Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/(Nfac), Delhi Dated 23.03.2023 For The Assessment Year 2004-05. 2. At The Outset, The Ld. Ar Of The Assessee Shri Nikhil Tiwari Appearing For The Assessee Has Drawn Our Attention To Additional Ground Nos. 8 & 9 Wherein Assessee Challenges The Validity Of The Assessment Order Passed In The Name Of The Non-Existent Entity [M/S.Legrand (India) Private Limited (Hereinafter “M/S. Legrand”/Non-Existent/ Merged Entity] & Not In The Name Of The Successor Entity I.E. M/S. Novateur Electrical & Digital Systems Pvt. Ltd. [Hereinafter “M/S.

For Appellant: Shri Nikhil TiwariFor Respondent: Shri H. M Bhat (SR. DR)
Section 142(1)Section 143(3)

into NEDSPL LIPL has been merged with NEDSPL, as per the provisions of sections 391 to 394 of the Companies Act, 1956. The Scheme of Arrangement (“Scheme”) has been approved by the Bombay High Court. The merger is effective from the Appointed Date i.e. April 1, 2011 (a copy

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

claimed by the assessee on goodwill arising pursuant to acquisition of the retail business arm of its associate concern by way of a scheme of arrangement on going concern basis. In this case also, the consideration agreed was higher than the difference in the value of tangible assets ... Vodafone India Services Pvt. Ltd. the assessee. This Tribunal also held that the assessee had acquired bundle of valuable business rights under this scheme of arrangement which was a valuable intangible and thus eligible for depreciation under section 32 of the Act. On further appeal by Revenue