“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

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

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

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

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

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

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

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

Deputy Commissioner of Income Tax, Central Circle-1, Noida vs. Raghav Bahl, Noida

In the result, appeal of the Revenue is dismissed

ITA 1640/DEL/2023[2020-21]Status: DisposedITAT Delhi19 Dec 2025AY 2020-21

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 139(1)Section 143(3)Section 250

paper book 1.8 The sale of the said shares corresponds to purchase on 3 different dates, and since there has been scheme of arrangement between TV18 Broadcast Ltd and TV18 India Ltd-refer page nos 81 to 114 and 115-116 of the paper book, the cost of acquisition would ... shares of IV18 India Ltd converted in the shares of M/s TV18 Broadcast Ltd and as an evidence to the same copy of scheme of arrangement was enclosed and para 8 of this scheme has been resorted for the swap ratio of 25 17 between demerged company and the resulting

DCIT Central Circle-1, Noida vs. Raghav Bahl, Noida

In the result, appeal of the Revenue is dismissed

ITA 1639/DEL/2023[2012-13]Status: DisposedITAT Delhi19 Dec 2025AY 2012-13

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 139(1)Section 143(3)Section 250

Deputy Commissioner of Income Tax, Central Circle 2(2), Chennai vs. Subramaniam Kathiresan, Chennai

In the result, appeal filed by the Revenue for AY 2014-15 is dismissed

ITA 899/CHNY/2025[2014-15]Status: DisposedITAT Chennai18 Dec 2025AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. N. Arjun Raj, Advocate &For Respondent: Ms. Gauthami Manivasagam

Section 132Section 153Section 153ASection 153A(1)Section 153C

satisfaction-note” prepared by the AO to assume jurisdiction in the case of assessee/third party u/s.153C of the Act (infra). Explaining the scheme of arrangement of sections u/s.153C of the 4. Act, the Ld.AR referred to Section 153C & 153A of the Act and submitted that the AO having jurisdiction under

M/S. Mahle Filters Systems (India) Ltd., New Delhi vs. DCIT, New Delhi

ITA 4621/DEL/2016[2010-11]Status: DisposedITAT Delhi15 Dec 2025AY 2010-11

Bench: Shri Mahavir Singh & Shri Krinwant Sahaydcit, Circle 16(1), Vs. Mahle Filters Systems (India) C.R. Bldg., New Delhi Ltd., 1, Sri Aurobindo Marg, New Delhi – 16 (Pan: Aaacp5890Q) (Appellant) (Respondent)

For Appellant: Sh. Neeraj Jain, Adv. & Sh. Tavish Verma, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 143(3)Section 391Section 80I

Mahle Filter Systems GMBH. In order to expand its business operations and to synergize its business operations, the assessee entered into a scheme of arrangement for amalgamation of erstwhile Mahle into the assessment under section 391 and 394 of the Companies Act, 1956. The salient features of the arrangement

DCIT, New Delhi vs. M/S Mahle Filter Systems (India) Pvt. Ltd., New Delhi

ITA 4240/DEL/2016[2010-11]Status: DisposedITAT Delhi15 Dec 2025AY 2010-11

For Appellant: Sh. Neeraj Jain, Adv. & Sh. Tavish Verma, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 143(3)Section 391Section 80I

M/S Gera Developments Pvt. Ltd, Pune vs. PCIT (Central), Pune

In the result, the appeal filed by the assessee is dismissed

ITA 1053/PUN/2024[2020-21]Status: DisposedITAT Pune09 Dec 2025AY 2020-21

Bench: Dr.Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Hari KrishanFor Respondent: Shri Amol Khairnar

Section 143(2)Section 143(3)Section 263

Goodwill which was generated during F.Y. 2015-16 when M/s.Gera Realty India Private Limited amalgamated with the assessee and in accordance with the scheme of arrangement the Assets and Liabilities were taken over at fair values. The excess amount over the above the value of assets of the amalgamating company ... which took place during F.Y. 2015-16 when there was amalgamation of Gera Realty India Private Limited with the assessee and under the scheme of arrangement the amount paid over and above the book value of the net assets of amalgamating company has been treated as Goodwill. Ld. PCIT

ACIT, New Delhi vs. M/S. Kct Papers Ltd., New Delhi

In the result, grounds raised by the revenue are dismissed

ITA 3380/DEL/2014[2008-09]Status: DisposedITAT Delhi05 Dec 2025AY 2008-09

Bench: Shri S.Rifaur Rahman & Shri Anubhav Sharmaacit, Circle 5 (1) Vs. M/S. Kct Papers Limited, New Delhi. Thapar House, 124, Janpath, New Delhi – 110 001. (Pan : Aacck4937D) (Appellant) (Respondent) Assessee By : Shri Rohit Jain, Advocate Shri Deepesh Jain, Advocate Shri Tavish Verma, Advocate Revenue By : Shri Kailash Dan Ratnoo, Cit Dr Date Of Hearing : 10.09.2025 Date Of Order : 05.12.2025 O R D E R Per S.Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-Viii, New Delhi [Hereinafter Referred To As ‘Ld. Cit (A)] Dated 21.03.2014For Assessment Year 2008-09. 2. Brief Facts Of The Case Are, The Assessee Company Belongs To The Thapar Group Established By Late Lala Karam Chand Thapar. There Was A Family Settlement Between The Various Constituents Of The Karam Chand Thapar Family As A Result Of Which Revenue-Organization/Restructuring Of The Group Dated 27Th April, 2001. The Re April, 2001. The Re-Organization Of The Group Companies & Trusts Organization Of The Group Companies & Trusts Was Made Into Four Groups, As Under, Each Headed By The Sons Of Late Lala Was Made Into Four Groups, As Under, Each Headed By The Sons Of Late Lala Was Made Into Four Groups, As Under, Each Headed By The Sons Of Late Lala K.C. Thapar. The Family Tree Of Karam Chand T K.C. Thapar. The Family Tree Of Karam Chand Thapar Family Is Explained As Hapar Family Is Explained As Under In The Form Of A Diagrammatic Chart: Under In The Form Of A Diagrammatic Chart:

For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri Kailash Dan Ratnoo, CIT DR

Section 391

aforesaid facts were also duly submitted before the assessing officer during the course of assessment proceedings along with copy of scheme of arrangement. Further, without prejudice to the above, it was also submitted that since shares of BIL stood vested in the assessee pursuant to the family settlement agreement among ... assessee on transfer of rights/interest in M/s. Energetic Construction Pvt. Ltd., which too stood vested in the assessee pursuant to the same scheme of arrangement, by considering the period of holding of previous owner for the purpose of computation of the said capital gains; (b) the transaction of amalgamation/ demerger

ACIT, Circle - 3 3 1, Mumbai vs. Jamnagar Utilities and Power Pvt Ltd, Mumbai

In the result, both the appeals of the Revenue are allowed

ITA 5312/MUM/2024[2019-20]Status: DisposedITAT Mumbai04 Dec 2025AY 2019-20

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Nimesh Vora/For Respondent: Mr. Vivek Perampurna, CIT-DR

Section 115JSection 135Section 139(1)Section 143(3)Section 144BSection 43ASection 80G

redeemable preference shares. 14.3 The assessee submitted that during FY 2018-19, EWPL proposed a transfer of its pipeline business under a scheme of arrangement sanctioned by the NCLT u/s 230-232 of the Companies Act, 2013. Reliance Industries Ltd. (RIL), was holding redeemable preference shares (RPS), at premium ... appellant is reproduced hereunder: - (i) In FY 2018-19, the Pipeline Business of EWPL was transferred to an external entity under a scheme of arrangement u/s.230-232 of the Companies Act, 2013, which scheme was sanctioned by the Hon'ble National Company Law Tribunal ("NCLT") at Ahmedabad and Mumbai

ACIT, Circle - 3 3 1, Mumbai vs. Jamnagar Utilities and Power Pvt Ltd, Mumbai

In the result, both the appeals of the Revenue are allowed

ITA 5310/MUM/2024[2020-21]Status: DisposedITAT Mumbai04 Dec 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Respondent: Mr. Nimesh Vora/

Section 115JSection 135Section 139(1)Section 143(3)Section 144BSection 43ASection 80G

Reliance Projects and Property Management Services Limited, Ahmedabad vs. The Pr. CIT, Ahmedabad-3, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1116/AHD/2024[2019-20]Status: DisposedITAT Ahmedabad27 Nov 2025AY 2019-20

Bench: Ms. Suchitra Kamble (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

For Appellant: Shri Nimesh Vora, A.RFor Respondent: Shri Praveen Verma, CIT-D.R

Section 143(3)Section 263Section 69

PCIT. She found that in the course of assessment depreciation was allowed on certain passive infrastructure assets received by the assessee under the scheme of arrangement with RCOM and RTL vide Bombay High Court order dated 16.03.2007 effective from 10.04.2007. However, the depreciation was allowed on these assets at their

Reliance Projects and Property Management Services Limited, Ahmedabad vs. The Pr. CIT, Ahmedabad-3, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1115/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad27 Nov 2025AY 2018-19

Bench: Ms. Suchitra Kamble (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)

For Appellant: Shri Nimesh Vora, A.RFor Respondent: Shri Praveen Verma, CIT-D.R

Section 143(3)Section 263Section 69

DCIT, Circle -3(1), Visakhapatnam vs. Nord Anglia Education Infrastructure Private Limited, Visakhapatnam

In the result, all the appeals filed by the revenue, viz

ITA 314/VIZ/2025[2014-15]Status: DisposedITAT Visakhapatnam26 Nov 2025AY 2014-15

Bench: Shri Ravish Sood & Shri Balakrishnan S.

For Appellant: 1.Shri Karnjot Singh KhuranaFor Respondent: Shri Badicala Yadagiri, CIT-DR

Section 143(3)

assessee company for the subject year, i.e., year ending 31.03.2018. Elaborating further on his contention, the Ld. AR submitted that prior to the scheme of arrangement between the assessee company (for short, “respondent”) and (i). M/s People Combine Hospitality Pvt. Ltd; and (ii). M/s People Combine Amenities ... hospitality business undertaking; (ii). infrastructure business undertaking; and (iii). infra school business undertaking. The Ld. AR submitted that as per the scheme of arrangement as was referred by the AO, the assessee company had transferred the business of “hospitality business undertaking” and “infrastructure business undertaking” to M/s People Combine Hospitality

DCIT, Circle - 3(1), Visakhapatnam vs. Nord Anglia Education Infrastructure Private Limited, Visakhapatnam

In the result, all the appeals filed by the revenue, viz

ITA 206/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam26 Nov 2025AY 2018-19

Bench: Shri Ravish Sood & Shri Balakrishnan S.

For Appellant: 1.Shri Karnjot Singh KhuranaFor Respondent: Shri Badicala Yadagiri, CIT-DR

Section 143(3)

DCIT, Circle - 3(1), Visakhapatnam vs. Nord Anglia Education Infrastructure Private Limited, Visakhapatnam

In the result, all the appeals filed by the revenue, viz

ITA 205/VIZ/2025[2017-18]Status: DisposedITAT Visakhapatnam26 Nov 2025AY 2017-18

Bench: Shri Ravish Soodand

For Appellant: 1.Shri Karnjot Singh KhuranaFor Respondent: Shri Badicala Yadagiri, CIT-DR

Section 143(3)

Ajay Gupta, Faridabad vs. Income Tax Officer, Ward-1(1), Faridabad

The appeal of the assessee is allowed

ITA 3011/DEL/2024[2017-18]Status: DisposedITAT Delhi26 Nov 2025AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year : 2017-18 Ajay Gupta, Vs. Ito, 293, Sector-15, Ward-1(1), Faridabad, Faridabad. Haryana – 121006. Pan: Bdppg7239G

For Appellant: Shri Gagan Khandelwal, Advocate; &For Respondent: Shri Ajay Kumar Arora, Sr. DR

Section 10(38)Section 147Section 68

payment made for purchase of shares in Fidelo Power and Infrastructure Ltd - available at page nos 26 and 27 of the paper book • Scheme of Arrangement and Order of Bombay High Court approving the merger of Fidelo Power and Infrastructure Ltd with Yamini 3 Investments Company Limited - available at page

JCIT (OSD), Central Circle-20, Jahandewalan vs. Avantha Realty Ltd. (Earlier Know As Janpath Investment Holding Ltd.), Delhi

Appeal of the Revenue is partly allowed

ITA 566/KOL/2024[1999-00]Status: DisposedITAT Kolkata20 Nov 2025AY 1999-00

Bench: Appropriate

Section 250Section 263

increased from Rs. 2,26,19,289 to 18,30,25,041/- mainly on account of vesting of assets as per approved Scheme of Arrangement and Reconstruction. vii. The assessee company had issued bond/ debenture and the payment of premium is basically in the nature of interest for the money ... erred on facts and in law in deleting the addition on account of "corporate expenses reimbursed" ignoring the fact, that, the scheme of arrangement and re-construction between the assessee and its holding company was effective from 29.01.1999 but the expenses was claimed for the complete year

Sudhir Babu Chalasani, Hyderabad vs. Income Tax Officer, Ward-17(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 1352/HYD/2025[2017-18]Status: DisposedITAT Hyderabad19 Nov 2025AY 2017-18

Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON’BLE (Judicial Member)

Section 10(38)Section 69A

Court of Telangana in Company Petition Nos.101 and 102 of 2011, dated 17.06.2011 between Stampede Capital Ltd and Brilliant Securities Ltd in the scheme of arrangements as Ltd. From the details submitted by the assessee, it is undisputedly clear that, the assessee has purchased 1,99,900 equity shares

Sudhir Babu Chalasani, Hyderabad vs. Income Tax Officer, Ward-17(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 1351/HYD/2025[2016-17]Status: DisposedITAT Hyderabad19 Nov 2025AY 2016-17

Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON’BLE (Judicial Member)

Section 10(38)Section 69A

Sudhir Babu Chalasani, Hyderabad vs. Income Tax Officer, Ward-17(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 1349/HYD/2025[2014-15]Status: DisposedITAT Hyderabad19 Nov 2025AY 2014-15

Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON’BLE (Judicial Member)

Section 10(38)Section 69A

Sudhir Babu Chalasani, Hyderabad vs. Income Tax Officer, Ward-17(1), Hyderabad

In the result, the appeal filed by the assessee in ITA

ITA 1348/HYD/2025[2013-14]Status: DisposedITAT Hyderabad19 Nov 2025AY 2013-14

Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON’BLE (Judicial Member)

Section 10(38)Section 69A