1992 (7) TMI 23

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.... of the transferee-company with effect from July 1, 1978. Similarly, the Calcutta High Court, by its order dated January 18, 1979, sanctioned the scheme of amalgamation at the instance of the transferor-company. Under the scheme of amalgamation, the U. K. company transferred its entire business and undertaking in India to the assessee-company with effect from July 1, 1978, for a consideration of Rs. 1,77,18,784 to be paid in the shape of equity shares of the assessee company of the value of Rs. 89,50,000 and Rs. 87,68,784 credit for an interest-free loan by the U. K. company, the loan being repayable in two instalments subject to the approval of the Reserve Bank of India. Although the scheme of amalgamation came into effect from July 1, 197....

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....nuary 1, 1969, but it should be as on July 1, 1978. These dates appear to have been wrongly reproduced from the order passed in another case. Moreover, the statement that the allotment took place in the subsequent year is also incorrect. The actual allotment which took place on May 3, 1979, is in the same previous year. The inclusion of the capital of the company should be as on July 1, 1978, and not January 1, 1978. The Tribunal has held that it relates back to the date of amalgamation, viz., July 1, 1978. The scheme of amalgamation as per the order of the Bombay High Court and the Calcutta High Court was admittedly approved with effect from July 1, 1978. The amount of capital for the purpose of surtax is to be computed as on the fir....