https://www.taxtmi.com/caselaws?id=28882 Section 72A relief depends on whether the amalgamating company was financially non-viable immediately before amalgamation and whether the amalgamation served the public interest. The Court held that the public interest requirement was satisfied because the merger preserved production, employment, and rehabilitation of an important industrial unit. On financial viability, the decisive test was the company's real condition at the relevant date, including liquidity, solvency, accumulated losses, capital erosion, creditor pressure, and access to finance. Market value of assets, the share exchange ratio, and isolated statements in company-court proceedings were irrelevant. The refusal of relief was therefore unsustainable and the impugned recommendations and order were quashed. en-us Fri, 07 May 1982 00:00:00 +0530 Wed, 12 Feb 2025 16:38:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28882 Section 72A relief depends on whether the amalgamating company was financially non-viable immediately before amalgamation and whether the amalgamation served the public interest. The Court held that the public interest requirement was satisfied because the merger preserved production, employment, and rehabilitation of an important industrial unit. On financial viability, the decisive test was the company's real condition at the relevant date, including liquidity, solvency, accumulated losses, capital erosion, creditor pressure, and access to finance. Market value of assets, the share exchange ratio, and isolated statements in company-court proceedings were irrelevant. The refusal of relief was therefore unsustainable and the impugned recommendations and order were quashed. Case-Laws Income Tax Fri, 07 May 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28882