← All Phrases

“demerger”

Mergers & RestructuringSection 2(19AA)Section 2(19AA)492 judgments

The decision most relied on for demerger is CIT v. Sonata Software Ltd. (21 Taxmann.com 23), cited in 54 judgments on BharatTax.

Leading authorities on demerger

CIT v. Sonata Software Ltd.
21 Taxmann.com 23 · 2012 · High Court
54
citing judgments

The case clarifies the negative conditions for Section 10A exemption, requiring an industrial undertaking not be formed by splitting up an existing business or using previously used machinery. It also establishes that tax benefits under provisions like Section 80J and 80IA attach to the undertaking itself, allowing successor entities to claim the unexpired benefit period.

CIT v. Micra India (P) Ltd.
231 Taxmann 809 · 2015 · High Court
42
citing judgments

An assessment order passed against a transferor company that has ceased to exist due to amalgamation or demerger is non est in the eyes of law and void, as this constitutes a jurisdictional error not curable under Section 292B of the Income-tax Act.

Electrocast Sales India Ltd. v. DCIT
170 ITD 507 · 2018 · ITAT
30
citing judgments

A scheme of amalgamation or demerger approved by the High Court, having considered public interest, cannot be disturbed by the revenue authorities solely on the ground that the assessee is not entitled to certain benefits like those under Section 72A of the Income Tax Act.

8.Ace Multi Axes System Ltd. v. Deputy Commissioner of Income Tax
367 ITR 266 · 2014 · High Court
26
citing judgments

The eligibility for deductions under sections 80-IB and 80-IA, and related issues like the initial assessment year, demerger, and resulting company status, are significant considerations in the context of company restructuring and tax benefits.

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.

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.

EID Parry India's v. CIT
23 Taxmann.com 348 · 2012 · High Court
20
citing judgments

Unabsorbed depreciation of an amalgamating company cannot be added to the written down value of assets in the hands of the amalgamated company. The Supreme Court has dismissed a special leave petition against a High Court decision on this point, implicitly upholding this proposition.

Premji Khimraj Shah v. ITO
118 ITR 216 · 1979 · Reported
11
citing judgments

Succession to business requires the successor to take over the whole or substantially the whole of the predecessor's business and continue it. A successor to only a part of the business, resulting from disintegration, is not considered a successor to the original business.

Judgments citing demerger

Schneider Electric Private Limited, Delhi vs. Deputy Commissioner of Income Tax, Circle 22(2), C. R. Building, Delhi

The appeal is allowed partly

ITA 5589/DEL/2024[2021-22]Status: DisposedITAT Delhi15 Oct 2025AY 2021-22

Bench: Shri Anubhav Sharma & Shri Manish Agarwalassessment Year: 2021-22 Schneider Electric Private Vs Dcit, Limited, Circle 22(2), C-56, Mayapuri Industrial Area, Delhi. Phase-2, West Delhi, Delhi – 110 064. Pan: Abacs1671F (Appellant) (Respondent) Assessee By : Shri Rohit Tiwari, Advocate & Ms Tanya, Advocate. Revenue By : Shri S.K. Jadhav, Cit-Dr Date Of Hearing : 20.08.2025 Date Of Pronouncement : 15.10.2025 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Assessee Against The Final Assessment Order Dated 28.10.2024 Passed By The Assessment Unit, Income-Tax Department (Hereinafter Referred To As The Ld. Ao) U/S 143(3) R.W.S. 144C(13) R.W.S. 144B Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For Ay 2021-22. 2. Heard & Perused The Records. On The Basis Of Submission & Material On Record It Comes Up That Assesse/ Appellant (Sepl) Was Incorporated In 2018 As A Subsidiary Of Schneider Electric Industries Sas (A Wholly Owned Subsidiary Of Schneider Electric Se) & Belgium. It Is A Private Limited Company

For Appellant: Shri Rohit Tiwari, Advocate &For Respondent: Shri S.K. Jadhav, CIT-DR
Section 143(3)

private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company was formed as a result of demerger from Schneider Electric India Private Limited pursuant to a scheme of arrangement approved by the National Company Law Tribunal, New Delhi on October

Caspian Impact Investments Private Limited, Hyderabad vs. DCIT., Circle-1(1), Hyderabad

In the result, the appeal of the assessee is allowed

ITA 749/HYD/2025[2019-20]Status: DisposedITAT Hyderabad03 Oct 2025AY 2019-20

Bench: Shri Ravish Sooda N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.749/Hyd/2025 (िनधा"रण वष"/Assessment Year: 2019-20) Caspian Impact Vs. Dy.Cit Investments Private Ltd, Circle 1(1) Hyderabad Hyderabad Pan:Aadcs4132K (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Hiten Thakkar, Advocate राज" व "ारा/Revenue By:: Dr. Sachin Kumar, Sr.Dr सुनवाई की तारीख/Date Of Hearing: 25/09/2025 घोषणा की तारीख/Pronouncement: 03/10/2025 आदेश/Order Per Madhusudan Sawdia, A.M.: This Appeal Is Filed By M/S. Caspian Impact Investments Private Limited, (“The Assessee”), Feeling Aggrieved By The Order Passed By The Learned Addl/Jcit (A)-1, Mumbai (“Ld. First Appellate Authority”), Dated 27.02.2025 For The A.Y. 2019-20. 2. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Hiten Thakkar, AdvocateFor Respondent: : Dr. Sachin Kumar, Sr.DR
Section 115JSection 143(1)(a)Section 36(1)(iii)Section 37(1)Section 43B

same as declared in the original return. During the year, the assessee acquired the debt division of M/s. Caspian Impact Investment Advisor Pvt. Ltd. (“demerged company”) pursuant to a scheme of demerger approved by the Hon’ble NCLT vide order dated 24.10.2019. To give effect to the said demerger ... Note No.29 of the audited financial statements, which records that a provision of Rs.10,41,545/- was standing in the books of the demerged company as on 01.04.2018. It was explained that pursuant to the scheme of demerger approved by the Hon’ble NCLT, the said provision got transferred

Vishal Furnishing Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 8(3)(1), Mumbai

ITA 4550/MUM/2024[2018-19]Status: DisposedITAT Mumbai01 Oct 2025AY 2018-19

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm Vishal Furnishing Limited Assistant Commissioner Of Income 211, Shiv Shakti Industrial Complex, Tax, Circle 8(3)(1), Mumbai. Vs. Lower Parel, Mumbai – 400011. Pan/Gir No. Aaacr2138K (Appellant) : (Respondent) Assessee By : Shri Rahul Hakkani Respondent By : Shri Vivek Perampurna (Cit Dr) Date Of Hearing : 10.07.2025 Date Of Pronouncement : 01.10.2025 O R D E R Per Kavitha Rajagopal, J M: This Appeal Has Been Filed By The Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S.250 Of The Income Tax Act, 1961 (‘The Act'), Pertaining To The Assessment Year (‘A.Y.’ For Short) 2018-19. 2. The Assessee Has Raised The Following Grounds Of Appeal: 1) The Learned Cit(A) Failed To Appreciate That The Assessment Order Was Passed In Violation Of The Principles Of Natural Justice & Contrary To The Scheme Of Assessment & Hence The Assessment Order Was A Nullity & Deserves To Be Quashed. 2) The Ld Cit(A) Erred In Confirming The Order Of Ao Disallowing Depreciation On Goodwill Of Rs 4,12,73,088/- (As Claimed In Accounts) Without Appreciating That Goodwill Had Arisen On Amalgamation & Was Eligible For Depreciation U/S 32 & Hence The Addition Of Rs 4,12,73,088/-May Be Deleted. Vishal Furnishing Limited

For Appellant: Shri Rahul HakkaniFor Respondent: Shri Vivek Perampurna (CIT DR)
Section 143(2)Section 250Section 32Section 32(1)Section 36(1)(va)

assessee’s case was selected for scrutiny for the reason that “high ratio of refund to TDS”, “amalgamation or demerger during the year” and “large business loss set off against other heads of income”. Notices u/s. 143(2) and 142(1) were duly issued and served upon the assessee

ACIT., Circle-5(1), Hyderabad vs. Net Net Ventures Pvt Ltd, Hyderabad

In the result, the appeal of the Revenue is partly allowed for statistical purposes

ITA 385/HYD/2025[2018-19]Status: DisposedITAT Hyderabad10 Sept 2025AY 2018-19

Bench: Shri Ravish Sood & Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.385/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2018-19) Asst. Commissioner Of Income Tax, M/S. Net Net Ventures Pvt. Ltd., Vs. Hyderabad. Circle 5(1), Hyderabad. Pan:Aabcn2106L (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri V. Siva Kumar, Advocate रधजस् व द्वधरध/Revenue By: Ms. U Mini Chandran, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 28/08/2025 घोर्णध की तधरीख/Pronouncement: 10/09/2025 आदेश/Order Per Madhusudan Sawdia, A.M.: This Appeal Is Filed By The Revenue (“The Assessee”), Feeling Aggrieved By The Order Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (“Ld. Cit(A)”), Dated 09.01.2025 For The A.Y. 2018-19. 2. The Revenue Has Raised The Following Grounds Of Appeal :

For Appellant: Shri V. Siva Kumar, AdvocateFor Respondent: Ms. U Mini Chandran, CIT-DR
Section 143(2)Section 68Section 69

closing balance as on 31.103.2017 of Rs.7,00,98,081/- under the head “Other Current Liabilities” from M/s. Net Net Web Com Pvt. Ltd.- Demerger (“ Net Net Web”), which was repaid during the year. The Ld. AO further observed that the assessee repaid an amount of Rs.1

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1437/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

associate and subsidiary companies were amalgamated with the assessee with effect from 01.04.2014. In the same scheme, the Healthcare Division of the assessee was demerged and transferred to Aculife Healthcare Pvt. Ltd. with effect from 01.10.2014. 3. For the Assessment Year 2015–16, the assessee filed its original return ... intangible assets being brand/trade name ITA Nos.1412-1413/Ahd/2019 with others Nirma Limited Vs. DCIT Assessment Years (2015-16 & 2016-17) 13 transferred from the demerged unit of Nirma Industries Ltd. The AO, however, held that as per assessment records, only depreciation of Rs.27,54,358/- was allowable

The Acti, Circle-3(1)(1), Ahmedabad vs. Nirma Limited, Ahmedabad

ITA 1436/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

associate and subsidiary companies were amalgamated with the assessee with effect from 01.04.2014. In the same scheme, the Healthcare Division of the assessee was demerged and transferred to Aculife Healthcare Pvt. Ltd. with effect from 01.10.2014. 3. For the Assessment Year 2015–16, the assessee filed its original return ... intangible assets being brand/trade name 15 ITA Nos.1412-1413/Ahd/2019 with others Nirma Limited Vs. DCIT Assessment Years (2015-16 & 2016-17) 15 transferred from the demerged unit of Nirma Industries Ltd. The AO, however, held that as per assessment records, only depreciation of Rs.27,54,358/- was allowable

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1413/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2016-17

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) बनाम / V/S. The Deputy Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / V/S. Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14A

associate and subsidiary companies were amalgamated with the assessee with effect from 01.04.2014. In the same scheme, the Healthcare Division of the assessee was demerged and transferred to Aculife Healthcare Pvt. Ltd. with effect from 01.10.2014. 3. For the Assessment Year 2015–16, the assessee filed its original return ... intangible assets being brand/trade name ITA Nos.1412-1413/Ahd/2019 with others Nirma Limited Vs. DCIT Assessment Years (2015-16 & 2016-17) 15 transferred from the demerged unit of Nirma Industries Ltd. The AO, however, held that as per assessment records, only depreciation of Rs.27,54,358/- was allowable

Nirma Limited, Ahmedabad vs. The Dcti, Circle-3(1)(1), Ahmedabad

ITA 1412/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita Nos.1412 & 1413/Ahd/2019 निर्धारण वर्ष / Assessment Years: (2015-2016 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner बनाम / Of Income Tax, V/S. Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./Pan : Aaacn5350K आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. Nirma Limited, बनाम / Nirma House, V/S. Ashram Road, Ahmedabad-380009. (Gujarat) स्थायी लेखा सं./ Pan: Aaacn5350K & C.O Nos.11-12/Ahd/2020 In आयकर अपील सं/Ita Nos.1436-1437/Ahd/2019 निर्धारण वर्ष / Assessment Years : (2015-16 & 2016-17) Nirma Limited, Nirma House, Ashram Road, Ahmedabad-380009. (Gujarat) The Deputy Commissioner Of बनाम/ V/S. Income Tax/The Assistant Commissioner Of Income Tax, Circle 3(1)(1), Ahmedabad. स्थायी लेखा सं./ Pan: Aaacn5350K अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent)

For Appellant: Shri Bandish Soparkar, withFor Respondent: Shri Alpesh Parmar, CIT-DR
Section 115JSection 143(3)Section 14ASection 80I

associate and subsidiary companies were amalgamated with the assessee with effect from 01.04.2014. In the same scheme, the Healthcare Division of the assessee was demerged and transferred to Aculife Healthcare Pvt. Ltd. with effect from 01.10.2014. 3. For the Assessment Year 2015–16, the assessee filed its original return ... assessee claimed depreciation of Rs. 4,39,14,935/- on intangible assets being brand/trade name transferred from the demerged unit of Nirma Industries Ltd. The AO, however, held that as per assessment records, only depreciation of Rs.27,54,358/- was allowable (25% of Rs. 1,10,17,431/- being