2018 (11) TMI 1590

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.... amalgamated with the assessee on 01/04/2007. In the computation of income for the assessment year 2011-12, assessee claimed brought forward losses of Rs. 5,23,41,814/-relating to M/s KNG Guruswamy Oil Mills. Section 72A of the Income Tax Act, 1961 ("the Act") provides that subject to fulfillment of certain conditions as prescribed in subsection (2), the amalgamated company shall be allowed to carry forward and set off of estimated losses and unabsorbed depreciation of the amalgamating company. In addition to the specified conditions as laid down in subsection (2), clause (iii) of subsection (2) read with rule 9C of the Income Tax Rules, 1962 (for short "the Rules") prescribes certain other conditions that must be fulfilled by the amalgamat....

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....Of Direct Taxes requesting relaxation of the condition of achieving the minimum prescribed 50% level of production for the KNG plant explaining all the details; that such an application was pending with the CBDT for approval. On that ground the assessee prayed that the claim of set off of brought forward losses be allowed. Ld. Assessing officer, however, found such an explanation not acceptable because the assessee company was not complying with the conditions prescribed under rule 9C, and proceeded to disallow the claim for brought forward losses was rejected. 5. Impugned order speaks that during the appellate proceedings assessee submitted that the CBDT duly considered the claim of the assessee and vide orders dated 17/10/2014 has relied....