INCOME TAX ACT, 1961

Loss - Carry forward and set-off -BIFR Certificate

Amalgamation scheme between assessee and MITCO was approved by BIFR with effect from 1-4-1994. A declaration under section 72A was made pursuant to which it was ordered that notwithstanding anything contained in any other provision of Act, accumulated losses and unabsorbed depreciation of MITCO would be deemed to be loss/depreciation of assessee for previous year in which amalgamation was effected. Accordingly, AO was directed to give credit of unabsorbed losses/depreciation of MITCO against income of assessee for assessment year 1995-96. Subsequently, CIT (A) rectified his order on ground that assessment year stated in BIFR certificate was 1996-97, and, therefore, benefit of set-off of accumulated losses and unabsorbed depreciation could only be given in year 1996-97. Held: It was noticed that assessment year 1996-97 mention on certificate issued by BIFR was a typographical error and therefore, assessee was eligible to claim benefit of section 72A in assessment year 1995-96.

Income-tax Act, 1961, Section 72A

A.Y. : 1995-96
Decision: In favour of assessee.

Case Law Analysis:ONGC v. CCE [1992] 104 CTR (SC) 31.

MMTC LTD. v. DY. CIT