https://www.taxtmi.com/caselaws?id=290432 The Court dismissed the Revenue Department's application to recall the order permitting the amalgamation of two companies. The Court held that Section 72-A of the Companies Act does not prohibit amalgamation based on companies' financial status and that the benefits of amalgamation align with legal provisions. It clarified that Section 72-A governs the relationship between the Income Tax Department and the assessee post-amalgamation and rejected the argument that amalgamation is prohibited between loss-making companies. The Court also emphasized that benefits entitled to the amalgamated company cannot be denied based on potential revenue loss, and recalling the order after almost three years would cause undue harm to the amalgamated company. en-us Thu, 23 Feb 2017 00:00:00 +0530 Fri, 25 Sep 2020 20:37:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290432 The Court dismissed the Revenue Department's application to recall the order permitting the amalgamation of two companies. The Court held that Section 72-A of the Companies Act does not prohibit amalgamation based on companies' financial status and that the benefits of amalgamation align with legal provisions. It clarified that Section 72-A governs the relationship between the Income Tax Department and the assessee post-amalgamation and rejected the argument that amalgamation is prohibited between loss-making companies. The Court also emphasized that benefits entitled to the amalgamated company cannot be denied based on potential revenue loss, and recalling the order after almost three years would cause undue harm to the amalgamated company. Case-Laws Income Tax Thu, 23 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290432