Amalgamation-linked tax refund claims must be examined under the sanctioned scheme and decided after hearing the transferee company.

A sanctioned amalgamation scheme provided that any income-tax refund not already credited to the transferor company would belong to the transferee company from the appointed date. On that basis, the transferee company sought processing and credit of the refund standing in the transferor's name. The High Court held that the respondents had to examine the representation and decide the refund request after giving the transferee company an opportunity of hearing. The refund matter was therefore required to be processed and determined in accordance with the sanctioned scheme and the petitioner's representation.

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Issues: Whether the petitioner, as transferee company under a sanctioned scheme of amalgamation, was entitled to have the income-tax refund standing in the name of the transferor company processed and credited in its favour.

Analysis: The refund claim was traced to a sanctioned scheme of amalgamation under which the transferor company stood merged with the petitioner from the appointed date, and the scheme contemplated that any tax refund not already credited in the transferor's accounts would belong to the transferee company. In view of the sanctioned amalgamation and the petitioner's representation, the respondents were required to examine the request and take a decision after giving the petitioner an opportunity of hearing.

Outcome: The respondents were directed to process the petitioner's representation and take a decision on effecting the refund in its favour within the stipulated time after hearing the petitioner.

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