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2020 (6) TMI 301
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.... the impugned notices dated 08.09.2015 and 21.09.2015 issued by the respondent under Section 148 of the Income Tax Act, 1961 seeking to reopen of the assessments for the Assessment Years 2010-2011 & 20112012 and consequential communications dated 20.07.2016 and 26.08.2016 for the respective Assessment Years overruling the objections of the petitioner. The petitioner has prayed for directing the respondent to drop the proposed re-assessment proceedings initiated by the respondent. 3. The petitioner is engaged in the manufacture of fertilizers, mixtures, micro nutrient fertilizers, bio pesticides, high quality seeds, and marketing of agro inputs, marketing of consumer industrial products, distributors of agro chemicals, Estate stores, Bata....
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....stments. * Under Section 115JB of the Income Tax Act, 1961. 7. These returns were sought to be re-opened under Section 148 of the Income Tax Act, 1961. To which the petitioner was also filed its objections. By the impugned orders, the respondent has rejected/ overruled the objections of the petitioner against the reopening of the assessments. The details are as follows:- W.P.No. Assessment Year Notice u/s.148 of the Act Objection date Impugned communications date overruling the objections 30564/2016 2010-2011 08.09.2015 19.01.2016 20.07.2016 32477/2016 2011-2012 21.09.2015 19.01.2016 26.08.2016 8. The reasons for re-opening the assessments of the respective Assessment Years as communicat....
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....the IT Act. Subsequently it is noticed that on 05.03.2010 the assessee company has obtained an order from Hon'ble Madras High Court approving the scheme of amalgamation between the Holding company T. Stanes & Co. Ltd. (Assessee company) and fully owned subsidery company M/s. Stanes Tyre and Rubber Products Ltd., w.e.f. 1.04.2009. In consequence of the amalgamation the assessee company has adjusted a sum of Rs. 2,98,02,930/- as loss brought forward from the amalgamating company, by virtue of amalgamation u/s.72A of the IT Act, 1961. In this connection it was observed that as per the provisions u/s. 72A(1)(a) and 72A97)(aa) for adjusting the brought forward loss of the amalgamating company, it should be an industrial undertaking eng....
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....ed that it is open for the petitioner to make all submissions before the respondent and in case there is a case for dropping on merits, the proceedings will be dropped on merits. 11. From a reading of the above it is evident that the only reason for reopening the assessment of the petitioner was that it was not entitled to adjust the loss of the transferor company as the said company was not engaged in the "manufacturing activity" within the meaning of Section 72A(1)(a) of the Income Tax Act, 1961. 12. In this connection, reliance has been placed on the decision of the Kerala High Court in CIT Vs. Vijaya Retreaders, (2002) 253 ITR 53 and that of the decision of the Hon'ble Supreme Court in CIT Vs. Tamil Nadu State Transport Corporatio....
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....tions would clearly be in violation of the decision of the Honourable Supreme Court in CIT Vs. Kelvinator of India Ltd, (2010) 2 SCC 723. 15. The issue as to whether the petitioner was entitled to adjust the loss of the brought forward from the books of accounts of the transferor company was subject matter of discussion before the assessment orders were passed for the respective Assessment Years. 16. Reopening of the assessment to deny the adjustments made under is therefore without jurisdiction. Therefore, the proviso to Section 147 of the Income Tax Act, 1961 puts an embargo on the respondent from proceeding further as no action shall be taken under this section after the expiry of four years from the end of the relevant assessment ....