TaxTMI 
TaxTMI 
2021 (3) TMI 259
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....1(1)(c) of the Income Tax Act, 1961 (hereinafter referred as to 'the Act') for Assessment Year 2011-12. 2. The matter relates to the penalty order dated 27.08.2018 passed by the Ld. CIT(A) confirming the order passed by the Ld. ACIT, Range- 1(3), Ahmedabad dated 27.03.2017 under Section 271(1)(c) of the Act, levying penalty of Rs. 17,86,440/-. 3. The brief facts leading to the case is this the M/s. Edelweiss Financial Advisors Ltd. having PAN No. AABCA2916K in short 'EFAL' has been amalgamated with Edelweiss Broking Limited having PAN No. AABCE9421H in short 'EBL' by and under the order passed by the Hon'ble High Court at Gujarat dated 17.10.2014 with effect from 01.10.2013. The said fact of amalgamation was brought to the notice of the r....
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....he amalgamating company i.e. EFAL stood dissolved from the date on which that amalgamation/transfer took effect and, thus, ceased to exist in the eyes of law, fact of which has been made known to the revenue as the said fact is reflecting at paragraph 2.2 at Page of the appellate order impugned before us. The appellant, as it further appears from the order impugned, vehemently made objection in regard to the penalty proceeding initiated and continued by the revenue in the name of the erstwhile company. The AO has no jurisdiction to levy penalty and/or to pass order in the hands of EFAL as it has become a non-existent entity. As submitted by the Ld. AR that the issuance of notice under Section 148 of the Act admittedly issued upon the dissol....
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..... In the said case of Maruti Suzuki India Limited, on 29.01.2013 a scheme for amalgamation of SPIL and MSIL was approved by the Hon'ble High Court with effect from 01.04.2012 in terms of which all liabilities and duties of the transferor company stood transferred to the transferee company and the transferor company stood dissolved without winding up. The scheme stipulated that the order of amalgamation would not be construed as an order granted exemption from the payment of stamp duty or taxes or any other charges, if any, payable in accordance with law. The MSIL participated in the assessment proceeding of erstwhile amalgamating entity i.e. SPIL through its authorized representative. But the final assessment order passed on 31.10.2016 was ....
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....view. There is a value which the court must abide by in promoting the interest of certainty in tax litigation. The view which has been taken by this Court in relation to the respondent for AY 2011- 12 must, in our view be adopted in respect of the present appeal which relates to AY 2012-13. Not doing so will only result in uncertainty and displacement of settled expectations. There is a significant value which must attach to observing the requirement of consistency and certainty. Individual affairs are conducted and business decisions are made in the expectation of consistency, uniformity and certainty. To detract from those principles is neither expedient nor desirable."" We have further carefully considered the judgment passed by the Co....