2025 (7) TMI 379

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....as justified in accepting the assessee's plea that there was no demerger of Plastic Product Division and Petro Chemical division without appreciating that under the relevant scheme approved by the Bombay High Court, the transfer of the two divisions has been defined as demerger and therefore the condition of section 2 (19AA) stood fulfilled and accordingly the assessee was not eligible for set off and carry forward of business loss of the erstwhile undertaking u/s. 72A(4)?". 2. The facts of this case is that on 1st November, 2004, the assessee filed a return of income, declaring a total income of Rs. 'Nil'. This return was processed under Section 143 (1) of the Income Tax Act, 1961 ("IT Act"). Thereafter, the case was selected for scrutin....

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....cals Pvt. Ltd., and NOCIL Petrochemicals Ltd., on the other. Since there was no demerger, the provisions of Section 72A(4) of the IT Act were not attracted, was the finding of the CIT(A). 5. Being aggrieved by the order of the CIT(A), the Revenue preferred an Appeal before the ITAT without any success, and which has resulted in the impugned order. 6. We have carefully gone through the order of the CIT(A) as well as the order of the ITAT. The ITAT, after examining the provisions of Section 72A(4) of the IT Act, and the definition of words 'demerger' appearing in Section 2 (19AA) as well as the definition of the words 'demerger company' in Section 2(19AAA) and the words 'resulting company' in Section 2 (41A) of the IT Act, came to the concl....