TaxTMI 
TaxTMI 
2013 (1) TMI 62
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....ertaking taken over from M/s. A.A. Alloys Ltd., despite the prohibition contained in sub-section 2 of Section 801 which would amount to reconstruction of already existing business or plant previously used for any purpose. as question arising from the order dated 16-12-2005 passed by the income tax appellate tribunal, Bangalore Bench, Bangalore in ITA No 122/Bang/2003 relating to assessment year 1995-96 of the respondent-assessee company. 2. Appeal has been admitted for examination. 3. Brief facts leading to the above appeal are that: The assessee is a limited company and for the assessment year in question viz., 1995-96 i.e. accounting period from 1-4-1994 to 31-3-1995, to be precise, on 1-4-1994, an industrial undertaking which wa....
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....n applies to any industrial undertaking which fulfils all the following conditions, namely:- (i) it is not formed by the splitting up, or the reconstruction, of a business already in existence; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose; (iii) it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India, and begins to manufacture or produce articles or things or to operate such plant or plants, at a....
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....for any purpose, if the following conditions are fulfilled, namely :- (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (b) such machinery or plant is imported into India from any country outside India; and (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee. Explanation 2 - Where i....
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....ggrieved by this order of the appellate commissioner, the revenue took up the matter further by way of appeal to the income tax appellate tribunal by filing ITA No 122(Bang)/2003, amongst other aspects. The tribunal, purporting to follow the judgment of this court in the case of COMMISSIONER OF INCOME TAX vs MASTER RAGHUVEER TRUST [(1985) 151 ITR 368], took the view that amalgamation does not amount to transfer within the meaning of Section 2(47) of the Act. The tribunal further observed that the revenue's challenge to this order by way of a special leave petition to the Supreme Court being not successful, affirmed the view taken by the appellate commissioner and dismissed the appeal of the revenue. 7. It is aggrieved by this order, the ....
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....he decision of this court in the case of MASTER RAGHUVEER TRUST [supra]. He has also placed reliance on the very decision of the Supreme Court in the case of SARASWATI INDUSTRIAL SYNDICATE LTD [supra]. 12. A perusal of the judgment of this court MASTER RAGHUVEER TRUST [supra] does indicate that the allotment of shares without consideration on amalgamation of a company in which the assessee has shareholding does not amount to transfer within the meaning of Section 2(47) of the Act for the purpose of levying capital gains tax. 13. Both learned counsel for the revenue and the assessee have placed reliance on the decision of the Supreme Court in the case of SARASWATI INDUSTRIAL SYNDICATE [supra]. We find on a perusal of this judgment that....