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TMI Blog2019 (2) TMI 1533X X X X Extracts X X X X X X X X Extracts X X X X ..... gamated company, may relax the condition of achieving the level of production and 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 circumstances preventing such efforts from achieving the same- Followed earlier year order - ADM AGRO INDUSTRIES DHARWAD P. LTD.[2018 (11) TMI 1590 - ITAT DELHI] We hold that the CIT (Appeals) was correct in allowing the benefit of set off of brought forward losses. We also add that the department’s contention that the CIT (Appeals) has contravened provisions of Rule 46A of the Rules by admitting additional evidence is also not substantiated by facts on record and, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee company in view of the provisions of Section 72A of the Income Tax Act, 1961 (hereinafter referred to as the Act ). During the year under consideration, the assessee had set off accumulated losses amounting to ₹ 1,04,77,404/- against its income. However, the Assessing Officer was of the view that the assessee had not satisfied the required conditions for the set off of accumulated losses and, therefore, the set off was disallowed by the Assessing Officer. 2.1 Aggrieved, the assessee approached the Ld. CIT (Appeals) who held that the assessee had fully complied with the conditions prescribed u/s 72A of the Act and the ground raised was allowed in favour of the assessee. Now, the department is in appeal before the ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard the rival submissions and have also perused the material available on record. A perusal of the order of assessment shows that the Assessing Officer has simply mentioned that the assessee has not complied with the conditions laid down in section 72A of the Act but has not specified as to how the conditions were not met by the assessee. The Ld. CIT (Appeals) has also noted in the impugned order that the findings of the Assessing Officer in this regard were ambiguous. 5.1 Section 72A of the Income Tax Act, 1961 ( the Act ) provides that subject to the fulfilment of certain conditions as prescribed in subsection (2), the amalgamated company shall be allowed to carry forward and set off of accumulated losses and unabsorbed deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Rules prescribes that the amalgamated company, owning an industrial undertaking of the amalgamating company by way of amalgamation, shall achieve the level of production of at least fifty per cent of the installed capacity of the said 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 thereof, however, provides that 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 amalgam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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