2014 (11) TMI 1032 - HC - Income Tax

Noticeably the Assessing Officer during the course of the proceedings under Section 153A/C of the Income Tax Act 1961 was informed about the amalgamation which resulted in dissolution of the respondent-assessee but no remedial or effective steps were taken.

Summary

Issues: Dismissal of appeals by Revenue based on previous court decisions and failure of Assessing Officer to take remedial steps post-amalgamation.

Analysis:
- The High Court dismissed the appeals by the Revenue, citing a previous decision in a similar case. The Court referred to the case of Commissioner of Income Tax-III versus Dimension Apparels Private Limited and other connected appeals, emphasizing the reliance on earlier judgments in Spice Entertainment Limited versus Commissioner of Income Tax and Commissioner of Income Tax versus Vivek Marketing Services Private Limited.

- The Court noted that during the proceedings under Section 153A/C of the Income Tax Act, 1961, the Assessing Officer was made aware of the amalgamation leading to the dissolution of the respondent-assessee. However, no effective measures were taken by the Assessing Officer to address this issue.

- Consequently, the Court decided to dismiss the appeals by the Revenue due to the precedents set by previous judgments and the failure of the Assessing Officer to undertake necessary actions following the amalgamation of the respondent-assessee. The dismissal was based on the grounds of non-compliance with the provisions of the Income Tax Act and the lack of corrective actions by the relevant authority despite being informed of the significant changes in the respondent's status.