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TMI Blog2018 (11) TMI 1590X X X X Extracts X X X X X X X X Extracts X X X X ..... d of five years from the date of amalgamation - the Central Government, on an application made by the amalgamated company, may relax the condition of achieving the level of production or the period during which the same is to be achieved or both in suitable cases having regard to the genuine efforts made by the amalgamated company to attain the prescribed level of production and the circumstances preventing such efforts from achieving the same. As clear that if the assessee obtains the relaxation of the conditions from the CBDT, it would be sufficient compliance with the requirements of section 72A. In this matter, there is no denial of the facts recorded by the CIT(A), and it is not the case of the revenue that the assessee did not obta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsection (2) read with rule 9C of the Income Tax Rules, 1962 (for short the Rules ) prescribes certain other conditions that must be fulfilled by the amalgamated company and such condition specified in Rule 9C is that the amalgamated company should achieve at least 50% of the installed production capacity of the amalgamating undertaking before the end of four years from the date of amalgamation and continue to maintain the said minimum level of production till the end of five years from the date of amalgamation. The proviso appended to Rule 9C (a) says that the Central Government, on application made by the amalgamated company, may relax the condition of achieving the level of production and the period during which the same is to be achie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der speaks that during the appellate proceedings assessee submitted that the CBDT duly considered the claim of the assessee and vide orders dated 17/10/2014 has relied on the condition of achieving the minimum prescribed 50% level of production for the KNG plant to 47% level of production. Taking cognizance of such an order, Ld. CIT(A) formed an opinion that the assessee had fully complied with the conditions prescribed under section 72 A of the Act and accordingly quashed the denial of set off of losses done by the Ld. Assessing Officer. Challenging the action of the 1st appellate authority, the revenue is in this appeal before us. 6. We have gone through the record. Rule 9C of the Rules prescribes that the amalgamated company, owning a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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