Merger

Hello to all.

I have a query regarding Merger.

My client had a private limited company and two sole properitorship firms.The sole properitors were directors of Pvt. limited compny aforesaid. It was in need of funds and to take loan it merged private limited co. n two of these firms tinto the company.

Was it right?

There is a case filed against on this matter by ITO seeking information of merger.

Suggest Me some Cases or guide

THANKS IN ADVANCE