9911796707
|
Home
Issues Involved: Reopening of assessment and amalgamation of companies.
Reopening of Assessment: The Appellate Tribunal ITAT DELHI heard an appeal by the revenue against the order of Ld CIT(A) for assessment year 2003-04. The assessee filed a cross objection challenging the reopening of assessment. The Ld counsel for the assessee cited a Delhi High Court decision in the case of Ranbaxy Laboratories Ltd. to argue that if no additions are made for the income for which assessment was reopened, then any other income cannot be included. The reasons for reopening mentioned an alleged amount of &8377; 3.60 crores received as an accommodation entry, but no such addition was made in the assessment order. The Ld DR argued that this information was the starting point of investigation, leading to an addition of commission income. However, the Tribunal found that no additions were made related to the alleged amount, thus following the precedent set by the Delhi High Court and Bombay High Court, the assessment was deemed unsustainable. Amalgamation of Companies: The Ld counsel for the assessee also raised an issue regarding the amalgamation of the assessee company with another company. Despite the amalgamation being effective from 1.4.2005, a notice u/s 148 was issued after the amalgamation had taken place. The counsel argued that the assessment should have been explored in the hands of the amalgamated company. Citing the Spice Entertainment Ltd. case, it was contended that the assessment was not sustainable due to this ground. The Ld DR did not counter this argument, and the Tribunal, having already passed the order, did not delve further into this issue or other issues on merit. In conclusion, the cross appeal of the assessee was allowed, leading to the dismissal of the revenue's appeal. The order was pronounced on 7th June 2013.
|
