The Income Tax Officer,Ward-6(2), Jaipurward-6(2), Jaipur v. Date Of Order ::: 20.09.2016

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR. D.B. Special Appeal (Civil) No. 19/2015 1.The Principal Commissioner of Income Tax Jaipur-2, Jaipur.Jaipur-2, Jaipur. 2.The Income Tax Officer,Ward-6(2), JaipurWard-6(2), Jaipur APPELLANT-APPLICANT VERSUS 1.Uma Enterprises Private Limited,A company Governed by the provisions of theCompanies Act, 1956, having its registered office atC.R. Dass Agriculture Farm, Tonk Road, Jaipur in theState of Rajasthan, within the aforesaid jurisdictioninto Aryansh Trading Pvt. Ltd., Ved Trademart Pvt. Ltd,Ajay Trademart Pvt. Ltd., Kamleshwar Textiles Pvt. Ltd.,Ambita Handicrafts Pvt. Ltd., Gautam Trademart Pvt.Ltd., Om Kamal Trading Pvt. Ltd., Master TrademartPvt. Ltd. and Shree Bhawani Trademart Pvt. Ltd.A company Governed by the provisions of theCompanies Act, 1956, having its registered office atC.R. Dass Agriculture Farm, Tonk Road, Jaipur in theState of Rajasthan, within the aforesaid jurisdictioninto Aryansh Trading Pvt. Ltd., Ved Trademart Pvt. Ltd,Ajay Trademart Pvt. Ltd., Kamleshwar Textiles Pvt. Ltd.,Ambita Handicrafts Pvt. Ltd., Gautam Trademart Pvt.Ltd., Om Kamal Trading Pvt. Ltd., Master TrademartPvt. Ltd. and Shree Bhawani Trademart Pvt. Ltd. Petitioner Demerged Company NON APPELLANTS. DATE OF ORDER ::: 20.09.2016 HON'BLE MR. JUSTICE K.S. JHAVERIHON'BLE MR. JUSTICE BANWARI LAL SHARMA Mr. Nikhile Simlote, for the Appellants.Mr. Gunjan Pathak, for the Respondent. ***** 1.In this intra-court appeal, the department haschallenged the judgment and order of the learned SingleJudge dated 8.5.2015 whereby the counsel for theDepartment was imposed cost of Rs. 20,000/- while grantingadjournment and the matter was fixed on 22.5.2015. 2.The brief facts of the case are that petitioner companyfiled demerger application under Section 391 and 394 of theCompanies Act contending that this Court may grant sanctionto the “Scheme of Arrangement” for demerger of Real EstateDivisions of Uma Enterprises Pvt. Ltd., into Aryansh TradingPvt. Ltd., Ved Trademart Pvt. Ltd, Ajay Trademart Pvt. Ltd.,Kamleshwar Textiles Pvt. Ltd., Ambita Handicrafts Pvt. Ltd.,Gautam Trademart Pvt. Ltd., Om Kamal Trading Pvt. Ltd.,Master Trademart Pvt. Ltd. And Shree Bhawani TrademartPvt. Ltd. and whole of the undertaking and properties of RealEstate Division together with all assets and liabilities, rightsand obligations of the Demerged Company is proposed to betransferred to and vested in the resultant Company No.1 to 9respectively, on the terms and conditions fully stated in thesaid scheme of Arrangement. Notice was issued on the saidapplication calling objections and thereafter notice wasissued to the Regional Director, Ministry of Corporate Affairs.In the course of hearing of application under Section 394,appellant Income Tax Department filed an application on8.5.2015 for impleadment contending that the said demergeris contrary to public interest. However, the learned SingleJudge by impugned order dated 8.5.2015 imposed cost onthe appellant-Department for adjournment sought on theapplication. 3.We have heard counsel for the appellant and counsel forthe respondent-Department Mr. Pathak. 4.Considering the fact that the learned Single Judge whileconsidering the application has granted adjournment on theapplication and imposed cost of Rs. 20,000/- on theDepartment which in our view is unreasonable, therefore, theorder impugned imposing costs of Rs. 20,000/- is quashedand set aside. 5.The appeal is accordingly allowed. (Banwari Lal Sharma), J. (K.S. Jhaveri), J. /bm gandhi 21