Case Law Details
Brief Facts of the Case
M/s Asian Consolidated Industries Ltd. was engaged in the business of manufacturing of open top sanitary and general line canes. There were two other sister concerns namely M/s Asian Closures Ltd. & M/s Trans Asia Packaging Ltd. The sister concerns M/s Asian Closures Ltd. was amalgamated with M/s Asian Consolidated Industries Ltd. by virtue of an order of the Hon’ble Punjab & Haryana High Court. Thereafter, the effect of the said order was given by the Registrar of Companies. The assessee claimed to have maintained separate books of accounts of both the above said companies for the assessment years 1992-93 to 1996-97 for both the companies and the returns of income were filed separately of both the aforesaid companies.
The another sister concern namely M/s Trans Asia Packaging Ltd. also amalgamated with M/s Asian Consolidated Industries Ltd. by virtue of the order of Hon’ble Punjab & Haryana High Court and the effect of this amalgamation was given by the Registrar of Companies on thereafter. The returns of income for the assessment years 1993-94-1994-95 were filed separately by M/s Trans Asia Packaging Ltd.
However, while completing the various assessments for the assessment years 1992-93 to 1996-97 in the case of M/s Asian Closures Ltd. and for the assessment years 1992-93 to 1994-95 in the case of M/s Trans Asia Packaging Ltd., the department had not taken cognizance of such merger and that set-off the losses and unabsorbed depreciation of the above said amalgamating companies i.e. M/s Asian Consolidated Industries Ltd. and M/s Trans Asia Packaging Ltd. had not been given against the amalgamated company M/s Asian Consolidated Industries Ltd.
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