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“transferor company”

Mergers & RestructuringSection 2(1B)Section 2(1B)283 judgments

The decision most relied on for transferor company is PCIT v. Mahagun Realtors Pvt. Ltd. (443 ITR 194), cited in 95 judgments on BharatTax.

Leading authorities on transferor company

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. 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. 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.

Marshall Sons & Co. (India) Ltd. v. ITO
223 ITR 809 · 1997 · Supreme Court
29
citing judgments

In cases of amalgamation, the computation of income should be done with reference to periods before and after the appointed day, not the date of court sanction. Amalgamating companies cease to exist in law upon 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.

330 250 Taxman 409/397 IT R 681 (Delhi), (b) Spice Enfotainment Ltd. v. CIT
52 Taxmann.com 356 · 2014 · High Court
21
citing judgments

An assessment order passed in the name of an amalgamated company that no longer exists is void ab initio and cannot be treated as a procedural irregularity curable under section 292B.

Judgments citing transferor company

Plr Textiles Ltd., Chennai vs. The ACIT, Corporate Circle-5(2), Chennai

In the result the appeal of the assessee is partly allowed

ITA 133/CHNY/2021[2005-06]Status: DisposedITAT Chennai27 Mar 2025AY 2005-06

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita No.: 133/Chny/2021 िनधा"रणवष" / Assessment Year: 2005-06 Plr Textiles Ltd., The Acit, 8K, Century Plaza, V. Corporate Circle -5(2), 560-562, Mount Road, Chennai – 641 034. Chennai – 600 018. [Pan: Aaacp-6536-D] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ"कीओरसे/Appellant By : Mr. R. Vijayaraghavan, Advocate ""थ"कीओरसे/Respondent By : Ms. Anitha, Addl. Cit सुनवाई की तारीख/Date Of Hearing : 06.02.2025 घोषणा की तारीख/Date Of Pronouncement : 27.03.2025 आदेश /O R D E R Per S. R. Raghunatha: This Appeal By The Assessee Is Filed Against The Order Of The Commissioner Of Income Tax (Appeals)-3, Chennai, Vide Ita No.153/Cit(A)-3/2018-19For The Assessment Year 2005-06, Dated 13.03.2020. 2. At The Outset, We Find That There Is A Delay Of 346 Days In Appeal Filed By The Assessee, For Which Petition For Condonation Of Delay Along With Reasons For Delay Has Been Filed. After Considering The Petition Filed By The Assessee, Reason For Delay In Filing The Appeal Was Due To Covid-19 Pandemic & Also Hearing Both The :-2-:

For Appellant: Mr. R. Vijayaraghavan, AdvocateFor Respondent: Ms. Anitha, Addl. CIT
Section 143(1)Section 143(3)Section 41(1)

cost of acquisition of assets on amalgamation in the hands of the assessee, is the cost of acquisition of the Transferor Company(KOIL/PLI), which as explained above is Rs.6.07 Crores applying provisions of section 49(3) read with section 47A.  Thus, the assessee claimed the cost of acquisition of land ... amalgamation approved by the High Court it has been mentioned that the promoters of the Transferee company (assessee) purchased the shares of the Transferor company (KOIL / PLI) and took over the said company on 06.12.1996 (Page 33 of the paper book-2).  The AO in the first round of litigation

DCIT., Circle 8(1), Hyderabad vs. East India Petroleum Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 1087/HYD/2024[2018-19]Status: DisposedITAT Hyderabad06 Feb 2025AY 2018-19

Bench: Shri Manjunatha G. & Shri K.Narsimha Charyआ.अपी.सं /Ita No.1087/Hyd/2024 (निर्धारण वर्ा/Assessment Year: 2018-19) Deputy Commissioner Of Vs. East India Petroleum Income Tax Limited Circle-8(1)(Incharge) Hyderabad Hyderabad [Pan : Aaace4494K] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri H.Srinivasulu, Ar रधजस् व द्वधरध/Revenue By: Ms.M.Narmada, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 16/01/2025 घोर्णध की तधरीख/Date Of 06/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: This Appeal Filed By The Revenue Is Directed Against Order Dated 19.08.2024 Of The Commissioner Of Income Tax (Appeals) [“Ld.Cit(A)”], National Faceless Appeal Centre (Nfac), Delhi, Pertaining To A.Y.2018-19. 2. The Brief Facts Of The Case Are That The Assessee, Engaged In The Business Of Providing Terminalling Services To Oil Marketing Companies For Storage Of Bulk Liquid Products Including Fuels Like High Speed Diesel, Motor Spirit, Petroleum

For Appellant: Shri H.Srinivasulu, ARFor Respondent: Ms.M.Narmada, CIT-DR
Section 32

Rs.9,23,40,520/-. 3. The case was selected for scrutiny. During the course of assessment proceedings, the Assessing Officer noticed that the transferor company, M/s RPPPL was formed in the year 2016 and the only activity it did was to borrow money from Axis Finance Ltd. to acquire ... India Petroleum Limited Standard-14 (“AS-14”) issued by Institute of Chartered Accountants of India (“ICAI”) and accordingly, all assets and liabilities of the transferor company has been accounted in the books of accounts of the transferee company, i.e. assessee company, which resulted in taking over excess liabilities

Mentor Graphics (India) Pvt. Ltd (Calypto Design Systems India Pvt Ltd- Amalgamated Company), New Delhi vs. DCIT Circle-16(1), New Delhi

The appeal is allowed

ITA 842/DEL/2021[2016-17]Status: DisposedITAT Delhi17 Jan 2025AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year: 2016-17 Mentor Graphics (India) Pvt. Ltd., Vs Dcit, (Calypto Design Systems India Pvt. Circle-16(1), Ltd. – Amalgamated Company), New Delhi. P-24, Green Park Extension, New Delhi – 110 016. Pan: Aabcm5494Q (Appellant) (Respondent) Assessee By : Shri Vishal Kalra, Advocate & Shri Ankit Sahani, Advocate & Shri Yishu Goel, Ar Revenue By : Shri S.K. Jadhav, Cit-Dr Date Of Hearing : 09.01.2025 Date Of Pronouncement : 17.01.2025 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Assessee Against The Final Assessment Order Dated 30.03.2021 Passed U/S 143(3) R.W.S. 144C (13) R.W.S. 143(3A & 143(3B) Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By The National E-Assessment Centre, Delhi (Hereinafter Referred To As The Ld. Ao).

For Appellant: Shri Vishal Kalra, Advocate &For Respondent: Shri S.K. Jadhav, CIT-DR
Section 142(1)Section 143(3)

assessments will be enforced and continued against the Transferee Company i.e. Mentor Graphics (India) Private Limited. in the same manner as in case of Transferor Company i.e. Calypto Design Systems India Private Limited. 4. Pendency of rectification and refunds eligible to Calypto Design Systems India Private Limited and considering