Held that High Court has approved the scheme of merger, the same cannot be disturbed by the Revenue by merely alleging that the merger was only to buy losses and that it is a colourable device; since assessee has fulfilled all the three conditions stipulated in S. 72A(2) cumulatively and also the requirement stipulated in R. 9C, set off of losses of the amalgamating company is allowable in the hands of the assessee. Followed Pentamedia Graphics Ltd. v. ITO (2010) 236 CTR 204 (Mad) (HC) Casby CFS (P) Ltd., In re (2015) 231 Taxman 89 (Bom) (HC) followed; J.K. (Bombay) (P) Ltd. v. New Kaiser-Hind Spinning Weaving Co, AIR 1970 SC 1041 and Sadanand Varde. v. State of Maharashtra (2001) 247 ITR 609 (Bom)(HC) (AY.2003-04)
Dy. CIT v. Piramal Enterprises Ltd. (2022) 216 TTJ 802 (Mum)(Trib)
S. 72A : Carry forward and set off of accumulated loss and unabsorbed depreciation-Losses of amalgamating company-High Court approved the scheme of merger-The merger scheme cannot be disturbed by the Revenue by merely alleging that the merger was only to buy losses and that it is a colourable device. [R. 9C Companies Act, 1956 S. 391(7)]