The assessee made application before the High Court under Section 261 of the Act read with Section 109 of the Code of Civil Procedure for certificate to appeal to this Court but the High Court dismissed the same.
The Income Tax Officer disallowed the appel lants claim for exemption.
The companypany had shown the aforesaid amount as a trading liability and the said trading liability was taken over by the appellant companypany.
The appellant, thereupon, approached this Court by means of special leave petition under Article 136 of the Constitution.
This Court granted leave.
The assessee filed appeal before the Appellate Assistant Commissioner who companyfirmed the order of the Income Tax Officer.
Bishamber Lal and Ms. Geetanjali Madan for the Appellant.
It further held that the amalga mated companypany was a successor in interest of amalgamating companypany and since the assets of both the companypanies were merged and blended to companystitute a new companypany the liabili ties attaching thereto must, therefore be, on the amalgamat ed companypany.
After amalgamation, the appellant companypany claimed exemption on the amount of Rs.58,735 from income tax for the assessment year 1965 66 on the ground that the amalgamated companypany was number liable to pay tax under Section 41 1 of the Income Tax Act 1961 hereinafter referred to as the Act as the expenditure had been allowed to the erstwhile Indian Sugar Company which was a different entity from the amalga mated companypany.
The assessee, thereafter, pre ferred appeal before the Income Tax Appellate Tribunal.
Hence this appeal.
From the Judgment and Order dated 15.4.
On these findings the High Court held that the amalgamated companypany, namely, the assessee was liable to pay tax on Rs.58,735 which came into its hands from the assets of the Indian Sugar Company.
1975 of the Punjab and Haryana High Court in I.T. Reference No.
Prior to the amalgamation, the Indian Sugar Company had been allowed expenditure to the extent of Rs.58,735 on accrual basis in its earlier assessment.
Briefly, the facts giving rise to this appeal are that the appellant Saraswati Industrial Syndicate is a limited companypany carrying on business of manufacturing and sale of sugar and machinery for sugar mills and other industries.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
91 of 1976.
Gauri Shanker, Manoj Arora, S. Rajappa and Ms. A. Subhashini for the Respondent.
The Judgment of the Court was delivered by SINGH, J. This appeal is directed against the judgment and order of the Punjab and Haryana High Court dated 15.4.1975 answering the Income Tax Reference made to it by the Income Tax Appellate Tribunal.
Another companypany, namely, the Indian Sugar and General Engi neering Corporation hereinafter referred to as the Indian Sugar Company was also manufacturing machinery parts for sugar mills.
14 of 1972.
After the amalgamation, the Indian Sugar Company lost its identity, as it did number carry on any busi ness.
On 28th September 1962 under the orders of the High Court the Indian Sugar Company was amalgamated with the appellant companypany.
