TaxTMI 
TaxTMI 
2025 (9) TMI 632
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....s of the case, the ld. CIT(A) erred in deleting the addition of Rs. 10.82 Cr made on account of revaluation of cost of land without properly appreciating the facts of the case." 2. Fact in brief is that return of income declaring total income at Rs. 22,78,08,140/- was filed on 12.02.2021. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 29.06.2021. A survey u/s 133A of the Act was carried at assessee's business premises on 22.09.2021. During the course of survey action, it was seen that assessee had purchases hundred percent shares of Somani and Co. Pvt. Ltd. for consideration of Rs. 182 crores vide share purchase agreement dated 04.01.2012. Subsequently, amalgamation of Somani and Co. Pvt. Ltd. ....
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....ventory. The AO also mentioned that assessee had paid only for share purchase consideration and credited full ownership and interest in the said land which had higher fair market value then the share purchase consideration. Therefore, the AO concluded that under the amalgamation the assessee had deliberately adopted fair value to record assets in order to artificially increase the WIP with the intention of undermining its profit. Therefore, the AO observed that assessee had not offered tax on related amount of re-valuation reflected in the form of capital reserve. Accordingly, the AO has added an amount of Rs. 10.82 crore as impact of revaluation in cost as worked out at para 19 of the assessment order. 3. The assessee filed appeal befor....
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....prejudicial to the interests of the stakeholders and against the interest of public. The appellant further submitted that once the High Court has approved the scheme of amalgamation and no objection was raised by the Income Tax Authorities against the proposed scheme, then post the approval of the scheme, no statutory authority has any power to question the validity of the said order. Appellant also relied upon following judicial pronouncements: ITO vs. Purbanchal Power Co. Limited (ITA No. 201/KOL/2010 dated 17.07.2014) (Kolkata ITAT) Electrocast Sales India Limited -vs- DCIT (2018) 170 ITD 507 (KO. ITAT); Keva Fragrance Pvt. Limited -vs. - DCIT (ITA No. 334/M/2020 dated 02.08.2021) (Mum. ITAT); CIT-vs.-....
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....ay High Court. The merger scheme approved by Hon'ble Bombay High court is binding on all the statutory authorities. 10.7 Given the underlying facts, I am also not convinced with the arguments of the AO on considering the cost of acquisition of shares as cost of land. The appellant, during the course of hearing, placed on record the assessment order for AY 2012-13 wherein the event of amalgamation and the effect of recording the capital asset at fair market value consequent to its conversion to stock-in-trade was placed before the AO. The effect of recording the capital asset at fair market value at the time of conversion of the same from investment to stock in trade was given in the AY 2012-13. The said assessment year was asse....
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....e position to be changed in a subsequent year. On these reasoning, in the absence of any material change justifying the Revenue to take a different view of the matter-and, if there was no change, it was in support of the assessee we do not think the question should have been reopened and contrary to what had been decided by the CIT/in the earlier proceedings, a different and contradictory stand should have been taken. We are, therefore, of the view that these appeals should be allowed and the question should be answered in the affirmative, namely, that the Tribunal was justified in holding that the income derived by the Radhasoami Satsang was entitled to exemption under ss. 11 and 12 of the IT Act of 1961. 10.9 Moreover, i....
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....ecord on the issue of addition of Rs. 10.82 crores made on account of re-valuation in the coast of the land. The assessee company had purchased hundred per cent shares of Somani & Co. Pvt. Ltd. for consideration of Rs. 182 crores vide share purchase agreement dated 04.01.2012. Thereafter, the said company was amalgamated with the assessee company as per the scheme of amalgamation vide Hon'ble Bombay High Court order dated 17.08.2021 with effect from 01.01.2012. In accordance with the scheme of amalgamation, the assessee had recorded all the assets of the transferor company at fair value and the excess of assets over liability was treated as capital reserve in the books of the assessee company. Accordingly, the assessee company had shown cap....