Assessee was a non-banking finance company (NBFC) . By virtue of order of High Court, six companies with unabsorbed capital and business losses were merged with assessee-company . Assessee’s claim was denied on ground that amalgamating companies did not own an ‘industrial undertaking’ as defined under S 72A of the Act. Allowing the appeal of the assessee the Tribunal held that ;  on fact, merger scheme duly approved by High Court having in mind larger public interest, could not be disturbed by revenue merely because assessee was not entitled for benefits under S. 72A of the Act. Tribunal also held that ,even otherwise, since department had not filed any appeal under section 391(7) of the Companies Act, 1956 against order of amalgamation sanctioned by High Court, by applying doctrine of acquiescence, department would be now barred from raising an objection to scheme .Accordingly the  assessee’s claim for set off of unabsorbed losses of amalgamating companies was to be allowed .( AY. 2012-13)