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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

Simens Healthcase Diagnostics Limited ( Through Successor in Interest Siemens Limited ), Mumbai vs. The Pr. CIT, Vadodara-2, Vadodara

ITA 1442/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad03 Apr 2024AY 2008-09

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./I.T.A. No. 1442/Ahd/2015 ("नधा"रण वष" / Assessment Years : 2008-09) Simens Healthcare The Principal बनाम/ Diagnostics Limited Commissioner Of Income Vs. (Through Successor In Tax Interest Siemens Limited) Vadodara-2 Birla Aurora, Level 21, Plot No. 1080, Dr. Annie Besant Road, Worli, Mumbai - 400030 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb8542M (Appellant) .. (Respondent) Shri Jet Kamar, A.R. अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Dr. Darsi Suman Ratnam, Cit.Dr Date Of Hearing 14/03/2024 03/04/2024 Date Of Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Instant Appeal Filed By The Assessee Is Directed Against The Order Dated 25.03.2015 Passed By The Principal Commissioner Of Income Tax, Vadodara-2 (‘Pcit’), Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred As To ‘The Act’), Whereby & Whereunder The Assessment Order Dated 23.10.2012 Passed By The Acit, Circle-4, Baroda (In Short ‘Ao’) Has Been Directed To

For Respondent: Dr. Darsi Suman Ratnam, CIT.DR
Section 143(3)Section 14ASection 263Section 40A

liabilities of one company are transferred or devolved upon another company, the successor-in- interest becomes entitled to the liabilities and assets of the transferor company subject to the terms and conditions of contract of transfer or merger as it were. When two companies amalgamate and merge into ... transferor company loses its entity as it ceases to have its business. However, their respective rights and liabilities are determined under the scheme of amalgamation but the corporate identity of the transferor company ceases to exist w.e.f. the date of amalgamation is made effective. Though, such concept is absolutely correct

Kifs International LLP, Ahmedabad vs. National Faceless Assessment Centre, Delhi Presently With ACIT, Central Circle-1(4), Ahmedabad

ITA 684/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad08 Feb 2024AY 2018-19

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 682, 683 & 684/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2016-17 To 2018-19) Kifs International Llp Acit बनाम/ B-81, Pariseema Complex, Circle-5(2)(1), Vs. C. G. Road, Ellisbridge, Narayan Chambers Ahmedabad 380006 Building, Ashram Road, Ahmedabad [Presently With Acit, Central Circle 1(4), 3Rd Floor, Aaykar Bhavan, Ashrma Road, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaqfk2892L (Appellant) .. (Respondent) Shri Tushar Hemani, Sr. Advocate & Assessee By : Shri Parimalsinh B. Parmar, A.Rs. Revenue By : Shri Ritesh Parmar, Cit. Dr & Shri Rajdeep Singh, Sr.Dr (On 08.11.2023) & Shri Kamlesh Makwana, Cit.Dr (On 30.01.2024) सुनवाई क" तार"ख / Date Of 08/11/2023 & 30.01.2024 Hearing घोषणा क" तार"ख /Date Of 08/02/2024 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Bunch Of Three Appeals Filed By The Assessee Are Directed Against The Common Order Dated 14.08.2023 Passed By Ld. Commissioner Of Income Tax (Appeals)-11, Ahmedabad (In Short ‘Cit(A)’) Arising Out Of The Orders Dated

For Appellant: Shri Parimalsinh B. Parmar, A.RsFor Respondent: Shri Ritesh Parmar, CIT. DR & Shri
Section 143(3)Section 147Section 32Section 32(1)Section 43(6)

accounting treatment preferred in the scheme. The excess consideration discharged by KIPL being shares issued to the shareholders of transferor company i.e. KSPL over the amount of net assets of KSPL recorded in the books of KIPL has been claimed to be the Goodwill in the books ... representation and/or query was received from the Income Tax Department and the official liquidator issued the report specifically stating that the affairs of the transferor company had been conducted within its object clause and had not been conducted in any manner prejudicial to the public interest. Affidavit to that effect

Kifs International LLP, Ahmedabad vs. The ACIT, Circle-5(2)(1) Presently With ACIT, Central Circle-1(4), Ahmedabad

ITA 683/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad08 Feb 2024AY 2017-18

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 682, 683 & 684/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2016-17 To 2018-19) Kifs International Llp Acit बनाम/ B-81, Pariseema Complex, Circle-5(2)(1), Vs. C. G. Road, Ellisbridge, Narayan Chambers Ahmedabad 380006 Building, Ashram Road, Ahmedabad [Presently With Acit, Central Circle 1(4), 3Rd Floor, Aaykar Bhavan, Ashrma Road, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaqfk2892L (Appellant) .. (Respondent) Shri Tushar Hemani, Sr. Advocate & Assessee By : Shri Parimalsinh B. Parmar, A.Rs. Revenue By : Shri Ritesh Parmar, Cit. Dr & Shri Rajdeep Singh, Sr.Dr (On 08.11.2023) & Shri Kamlesh Makwana, Cit.Dr (On 30.01.2024) सुनवाई क" तार"ख / Date Of 08/11/2023 & 30.01.2024 Hearing घोषणा क" तार"ख /Date Of 08/02/2024 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Bunch Of Three Appeals Filed By The Assessee Are Directed Against The Common Order Dated 14.08.2023 Passed By Ld. Commissioner Of Income Tax (Appeals)-11, Ahmedabad (In Short ‘Cit(A)’) Arising Out Of The Orders Dated

For Appellant: Shri Parimalsinh B. Parmar, A.RsFor Respondent: Shri Ritesh Parmar, CIT. DR & Shri
Section 143(3)Section 147Section 32Section 32(1)Section 43(6)

accounting treatment preferred in the scheme. The excess consideration discharged by KIPL being shares issued to the shareholders of transferor company i.e. KSPL over the amount of net assets of KSPL recorded in the books of KIPL has been claimed to be the Goodwill in the books ... representation and/or query was received from the Income Tax Department and the official liquidator issued the report specifically stating that the affairs of the transferor company had been conducted within its object clause and had not been conducted in any manner prejudicial to the public interest. Affidavit to that effect

Kifs International LLP, Ahmedabad vs. The ACIT, Circle-5(2)(1) Presently With ACIT, Central Circle-1(4), Ahmedabad

ITA 682/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad08 Feb 2024AY 2016-17

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 682, 683 & 684/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2016-17 To 2018-19) Kifs International Llp Acit बनाम/ B-81, Pariseema Complex, Circle-5(2)(1), Vs. C. G. Road, Ellisbridge, Narayan Chambers Ahmedabad 380006 Building, Ashram Road, Ahmedabad [Presently With Acit, Central Circle 1(4), 3Rd Floor, Aaykar Bhavan, Ashrma Road, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaqfk2892L (Appellant) .. (Respondent) Shri Tushar Hemani, Sr. Advocate & Assessee By : Shri Parimalsinh B. Parmar, A.Rs. Revenue By : Shri Ritesh Parmar, Cit. Dr & Shri Rajdeep Singh, Sr.Dr (On 08.11.2023) & Shri Kamlesh Makwana, Cit.Dr (On 30.01.2024) सुनवाई क" तार"ख / Date Of 08/11/2023 & 30.01.2024 Hearing घोषणा क" तार"ख /Date Of 08/02/2024 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Bunch Of Three Appeals Filed By The Assessee Are Directed Against The Common Order Dated 14.08.2023 Passed By Ld. Commissioner Of Income Tax (Appeals)-11, Ahmedabad (In Short ‘Cit(A)’) Arising Out Of The Orders Dated

For Appellant: Shri Parimalsinh B. Parmar, A.RsFor Respondent: Shri Ritesh Parmar, CIT. DR & Shri
Section 143(3)Section 147Section 32Section 32(1)Section 43(6)

accounting treatment preferred in the scheme. The excess consideration discharged by KIPL being shares issued to the shareholders of transferor company i.e. KSPL over the amount of net assets of KSPL recorded in the books of KIPL has been claimed to be the Goodwill in the books ... representation and/or query was received from the Income Tax Department and the official liquidator issued the report specifically stating that the affairs of the transferor company had been conducted within its object clause and had not been conducted in any manner prejudicial to the public interest. Affidavit to that effect