TaxTMI 
TaxTMI 
2016 (1) TMI 1266
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd of appeal, on earlier occasion the assessee approached this Tribunal against the various additions/disallowance made by AO, in the assessment order against which the appeal was preferred to the CIT(A) and thereafter to this Tribunal. The appeal of assessee was registered vide ITA No. 8551/Mum/2010 and was disposed of vide order dated 10.08.2012 and the matter was remanded to the file of CIT(A) with the direction to give proper opportunity, as the order passed by the CIT(A) was passed without giving opportunity to the assessee. 3. The impugned order 21 .05.2013, against which the present appeal is filed was passed in giving effect the order of ITAT dated 10.08.2012, wherein the revenue has raised only one ground about the deleting of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....harma Chemicals which was a partnership firm. M/s Orgo Farma Chemicals after transfer of manufacturing plant and liability is also carriying other business. Thus the assets and liability including manufacturing plant was taken over by M/s Lovin Care Product Pvt. Ltd in the said agreement for a consideration for a consideration of Rs. 100,000/-, and the consideration of Rs. one lacks was in excess of assets and liability of Orgo Pharmaceuticals. And as per the details of assest and liability of Orgo Chemicals , the assest was of Rs. 163,44,43,978/- and Liablity of Rs. 163,44,43,978/-. M/s Orgo Chemical was extended a loan of Rs. 4,04,02,671/- by M/s Landmark Builder which is unit of M/s Synchem Chemical(I) Pvt. Ltd. And this loan was advance....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emicals in FY-2002-03 is for trading purpose or capital purpose, the loan of Rs. 4.04 Crore advanced by Landmark Builder which was unit of Synchem Chemical to Orgo Pharm Chemical which is partnership firm of Orgo Pharma Chemical in term of advance this loan to Khandelwal Estates Pvt. Ltd. has utilized this amount for payment of loan to HDFC. The CIT(A) further observed that M/s Orgo Pharma entered in business transfer agreement from 01.01.2004 and sole certain assets and liability to M/s Lovin Care Pvt. Ltd. for a consideration of Rs. 1,00,000/- and that Lovin Care Pvt. Ltd. amalgamated w.e.f 01.03.2005 with Zyma Laboratory Ltd.. M/s Orgo after transfer of liability and assets was also conducting their own business on examination of above d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ess in this case, as per I. T. Act Explanation 1 to sec.41(1) examine the details of transfer of M/s.Orgo Pharma Chemicals entered business transfer agreement in which certain liabilities and assets were transferred to M/s. Lovin Care Products P. Ltd. on 01.01.2004 for a consideration of Rs. 1,00,000/-. The assets transferred from partnership firm M/s. Orgo Pharma Chemicals to M/s. Lovin Care Products P. Ltd. 1S Rs. 163,44,34,971/- and aggregated liabilities are Rs. 163,43,34,970/-. After the transfer also M/s.Orgo Pharma Chemicals is existing as a business concern and conducting the business and it is also filing income-tax returns in its own name i.e. M/s. Orgo Pharma Chemicals, Partnership Firm. If we examine sec.170 of I. T. Act in whic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....anation of Sec. 170 of I.T. Act, hence condition no. (ii) was not fulfilled. A.O's addition is not tenable in law. 14. The AO while making the addition relied upon the case of CIT vs. T.V. Sundram Iyngar & Sons reported vide 222 ITR 344(SC) and Solid Containers Ltd. vs. DCIT 308 ITR 417 on the issue of treating the loan as trading liability. The fact of the T.V. Sundram Iyngar case are entirely different from the fact of the case in our hand the case in our hand in respect of re-payment of loan which was assigned on account of scheme of amalgamation which was approved by Hon'ble Bombay High Court and in the case of T.V.Sundram, the assessee was given trading advances which were adjusted by carrying on the business and credit balance stan....