1983 (6) TMI 23

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....ribunal, Bangalore Bench, has referred the following two questions under s. 256(1) of the I.T. Act for the opinion of this court : (i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-company is not entitled to carry forward any loss and unabsorbed depreciation allowance of Hindustan Aircraft Ltd. ? (ii) Whether, on the facts and....

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....nsfer of certain items of Property.-For the purposes of this Order, all the profits and/or losses, if any, of the dissolved company for the year 1963-64 and for the period from the 1st day of April, 1964, to September 30, 1964, and the revenue reserves and/or deficits, if any, of the dissolved company, when transferred to the company resulting from the amalgamation under the provisions of this Ord....

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....also by the Income-tax Appellate Tribunal. The Tribunal, on a consideration of the various clauses in the said Government Order and applying the ratio of the decision of the Privy Council in Indian Iron & Steel Company Ltd. v. CIT [1943] 11 ITR 328, held that the Explanation to cl. 3 of the Amalgamation Order could not be taken advantage of by the assessee-company to carry forward the losses and u....

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....edecessor, unless it is a case of succession by inheritance. The principle is that the successor in business must be treated as if it had commenced or set up new business. In Indian Iron & Steel Co. Ltd. v. CIT [1943] 11 ITR 328 (PC) the judicial Committee of the Privy Council observed that when there is an amalgamation of two companies, the unabsorbed depreciation allowance of the one company ....