Horizen Edge Technologies Pvt. Ltd. (2025-VIL-211-AAR)
The West Bengal Authority for Advance Ruling in a significant ruling has held that an advance ruling obtained by an original entity which has been overtaken by a newly incorporated entity to overtaken original entity as a going concern shall not be applicable to the newly incorporated entity.
Horizen Edge Technologies Pvt. Ltd. (‘Applicant’) was incorporated with an intent to overtaking the operations of M/s Horizen- A proprietorship concern.
Pursuant to incorporation of Horizen Edge Technologies Pvt. Ltd., The Applicant sought an advance ruling on the taxability of the transfer of the business on a going concern basis to the applicant. Applicant further raised a question as to whether the taxability of the transactions entered into by the original entity which has been overtaken would remain same, or will there be any change in the taxability?
The West Bengal Authority for Advanced Ruling, relying upon the provisions of Section 103(1) held that the advance ruling pronounced by the Authority earlier, was applicable only on the original entity i.e. person who has sought the advance ruling and the Concerned Jurisdictional Officer in respect of the applicant.
In view of the above, the Authority for Advance Ruling held that the ruling obtained erstwhile (i.e., by original entity) shall not be applicable on the new concern which has overtook the original entity.