9911796707
TMI Blog2025 (1) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act, calling for various information from the assessee. While examining the issues in course of the assessment proceedings, the A.O. noticed that the assessee has claimed brought forward losses of Rs. 10,87,13,901/- and unabsorbed deprecation of Rs. 1,65,62,869/-. He, therefore, called upon the assessee to justify such claim with documentary evidence. In response to the query raised by the A.O., the assessee submitted that as per the scheme of Amalgamation sanctioned by National Company Law Tribunal ('NCLT' for short), Mumbai Branch on 02.11.2018, the assets and liabilities of business unit of Concord Blue Technology Private Limited ('CBTPL' for short) were transferred to and vested with assessee w.e.f. 01.04.2017. It was submitted by the assessee that upon merger of CBTPL with the assessee during the year, the business losses/unabsorbed depreciation of CBTPL from A.Ys. 2014-15 to 2017-18 got transferred to the assessee, which have been claimed in the impugned assessment year. 4. After examining the submissions of the assessee and verifying the documentary evidences, the A.O. ultimately completed the assessment u/s. 143(3) of the Act vide order dated 15.04.2021, determini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submitted, in response to the query raised, the assessee not only justified the claim of deprecation, but also furnished the supporting documentary evidences. He submitted, after getting fully satisfied with the submissions made and documentary evidences furnished, the A.O. allowed assessee's claim. Thus, he submitted, the assessment order passed cannot be considered to be either erroneous and prejudicial to the interest of the Revenue so as to vest jurisdiction with ld. PCIT to invoke section 263 of the Act. 8. Drawing our attention to the order of NCLT, ld. Counsel submitted, CBTPL had two divisions, one is Municipal Solid Waste Division and, second one is Industrial Sold Waste Division. He submitted, as per the scheme of Amalgamation approved by NCLT, the assets and liabilities of Industrial Solid Waste Division got transferred to the assessee. He submitted, the assets and liabilities of Municipal Solid Waste Division were not transferred to the assessee as part of scheme of Amalgamation. Thus, he submitted, the trade receivable, which is the subject matter of proceedings u/s. 263 of the Act, since relates to Municipal Solid Waste Division, was never transferred to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee furnished its reply on 01.03.2021, explaining in detail the scheme of Amalgamation and the assets and liabilities acquired on merger of CBTPL. From the reply furnished before the A.O. on 23.03.2021, it can be seen that the assessee had very clearly stated that as per the scheme of Amalgamation, the assets and liabilities of Industrial Solid Waste business unit of CBTPL were transferred and vested with the assessee. Whereas, post-merger, CBTPL continued with the business of Municipal Solid Waste Management. In support of such contention, the assessee had furnished the scheme of Amalgamation, minutes of board meeting of CBTPL as well as the details of assets and liabilities appearing in the books of CBTPL before demerger. 12. Thus, from the aforesaid facts, it is very much clear that in course of assessment proceeding, the A.O. had enquired in detail regarding the claim of depreciation on goodwill. It is further evident, as on 31.03.2017, just prior to demerger, the book value of net asset of CBTPL was as under: Particulars Book value of retained undertaking (in INR) Book value of demerged undertaking (in INR) Comments Assets: Fixed Assets &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment as at 31 March 2017 Amounts in INR Audited-31st March 2017 Municipal Solid Waste Division Industrial Solid Waste Division EQUITY AND LIABILITIES Shareholders funds Share capital 3,49,00,000 3,49,00,000 Reserves and surplus (7,37,01,892) (7,37,01,892) (3.88,01,892) (3.88,01,892) Capital Reserve Non-current liabilities Long-term borrowings 1,75,00,000 1,75,00,000 Deferred tax liabilities (net) 80,842 80,842 Long-term provisions 1,93,641 1,93,641 1,77,74,483 1,77,74,483 Current liabilities Short-term borrowings 6,87,76,297 6,87,76,297 Trade payables 80,31,286 80,31,285 Other current liabilities 9,41,93,262 9,41,93,262 Short-term provisions 42,96,839 34,90,236 8,06,603 17,52,97,685 1,15,21,522 16.37,76,162 TOTAL 15,42,70,276 (2,72,80,370) 18,15.50,645 ASSETS Non-current assets Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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