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TMI Blog2020 (8) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... That would prejudice to ground no. 2(a), above, the Ld. AO as well as Ld. CIT(A) is not justified in making/confirming the disallowance u/s 14A read with Rule 8D of IT Act in excess of the exempted income of dividend which is only of Rs. 41,19,539/- 3. That would prejudice to ground no. 1 above and on the facts and circumstances of the case and provision of the law, the Ld. AO as well as Ld.CIT(A) erred in making/confirming the addition of Rs. 5,48,88,600/- towards interest on NPAs on accrual basis by totally disregarding the specific section 43D of the IT Act applicable to banking industry in this regard. 4. That without prejudice to ground no. 1 above and on the facts and circumstances of the case and provisions of the law, the Ld. AO as well as Ld. CIT(A) erred in making/confirming the disallowance of Rs. 1,53,54,015/- in respect of amortization of premium paid at the time of purchase of securities over the remaining period of securities. 5. That without prejudice to ground no. 1 above and on the facts and circumstances of the case and provisions of the law, the Ld. AO as well as Ld.CIT(A) erred in making/confirming the disallowance of Rs. 20,39,000/- towards provision for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book containing pages 1 to 118. He referred to page 7-9 of the paper-book, which is a copy of letter dated 20/11/2014 filed with the learned Assessing Officer. The para-6 of the said letter, wherein the assessee intimated that the erstwhile entity, M/s 'Haryana Gramin Bank' was no longer in existence, is reproduced as under: "6. That the assessee bank M/s. Haryana Gramin Bank got amalgamated with M/s. Sarva Haryana Gramin bank as on 29.11.2013 vide Gazettee Notification no. 2686 of Govt. of India. Now, the assessee, namely, M/s. Haryana Gramin Bank is not in existence. (copy of Gazette Notification attached herewith)." 4.1 The learned Counsel also referred to copy of Gazette notification of Ministry of the Finance dated 29/11/2013 notifying amalgamation of M/s Haryana Gramin Bank with M/s Sarva Haryana Gramin bank, which was effective from the date of the publication of the notification. 4.2 Despite this information provided by CA, Sh. Naveen Kumar Goyal, the Assessing Officer proceeded to make the assessment under section 143(3) of the Act on the erstwhile entity M/s Haryana Gramin Bank. 4.3 Before the Ld. CIT(A), the assessee referred to section 170(2) of the Act and submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves to bring his legal heir on record so that assessment proceeding thereafter could be continued on legal heir and the authorized representative should also be authorized thereafter by the legal representative to appear in the assessment proceedings. A dead person cannot be represented by the Authorized Representative in proceedings subsequent to his death, though he was authorized for appearing in the assessment proceeding prior to his death. Similarly, when one (first) entity gets amalgamated with another (second) entity, the erstwhile entity (first entity) does not exist from the effective date of the amalgamation. It is not that amalgamation will be effective in relation to the assessment year when it came into effect, but the pending proceedings of earlier assessment years also cannot be carried on such non-existence person and once it is brought to the notice of the Assessing Officer the fact of non-existence of the erstwhile entity and merger of the erstwhile entity with the new entity, the Assessing Officer is required to take the successor entity on record and the authorized representative appearing also is required to file the power of attorney duly authorized by the ama ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Length. 11 MSIL participated in the assessment proceedings of the erstwhile amalgamating entity, SPIL, through its authorized representatives and officers. This is evident from the copies of the order sheets of the assessment proceedings before the assessing officer for AY 2012-13. Post amalgamation, on 30 September 2013, the Chartered Accountants addressed a communication to the Commissioner of Income Tax, Circle 9(1), pursuant to the notice under Section 143(2) for an adjournment of the assessment proceedings for AY 2012-13 until the assessment proceedings for AY 2010-11 and AY 2011-12 were completed. On 27 October 2014, the Deputy Commissioner of Income Tax Circle 9 (1) addressed a communication to the Principal Officer, SPIL seeking a response to a detailed questionnaire. Thereafter, on 4 September 2015, the Deputy Commissioner of Income Tax Circle 16(1) called for disclosure of information in the course of the assessment for AY 2012-13. The communication was addressed to: "The Principal Officer M/s Suzuki Power Train India Limited (Now known as M/s Maruti Suzuki India Limited)." 12 On 8 October 2015, a communication was addressed by the DGM (Finance) for MSIL in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which dismissed the appeal of the Revenue in Spice Enfotainment on 2 November 2017. The decision in Spice Enfotainment has been followed in the case of the respondent while dismissing the Special Leave Petition for AY 2011-2012. In doing so, this Court has relied on the decision in Spice Enfotainment. 34 We find no reason to take a different view. There is a value which the court must abide by in promoting the interest of certainty in tax litigation. The view which has been taken by this Court in relation to the respondent for AY 2011-12 must, in our view be adopted in respect of the present appeal which relates to AY 2012-13. Not doing so will only result in uncertainty and displacement of settled expectations. There is a significant value which must attach to observing the requirement of consistency and certainty. Individual affairs are conducted and business decisions are made in the expectation of consistency, uniformity and certainty. To detract from those principles is neither expedient nor desirable." 4.7 The issue in dispute in the instant case being squarely covered by the decision of the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd (supra), we set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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