TaxTMI 
TaxTMI 
TaxTMI 
2020 (6) TMI 301
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....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 products, Tarpaulins etc. It is also engaged....
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....d 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 communicated are as follows:- For Assessment Year 2010-11 For Assessment Year 2011-2012 "The assessment in this case was completed u/s 143(3) of the....
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....heme 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 engaged in manufacture or processing of goods. In this case, the Stanes Tyre and Rubber Producers were engaged in the business of tyre retreading only. As per t....
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..... 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 Corporation (2001) 252 ITR 883. For the Assessment Year 2010-11, the tax was paid under Section 115JB of the Income Tax Act, 1961 and it has been proposed to be recomputed by denying the adjustmen....
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....tled 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 year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 or in response t....