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2023 (3) TMI 1483 - BOMBAY HIGH COURTValidity of reassessment proceedings in name of a non-existing company - notice issued after scheme of amalgamation as approved by the High Court - HELD THAT:- In the case of Spice Entertainment Ltd. [2011 (8) TMI 544 - DELHI HIGH COURT] a Division Bench of the Delhi High Court held that once the factum of amalgamation of a company had been brought to the notice of the AO, despite which the proceedings are continued and an order of assessment passed in the name of non-existent company, the order of assessment would not merely be a procedural defect but would render it void. Recently, the apex court in the case of Pr. CIT v. Maruti Suzuki India Ltd.[2019 (7) TMI 1449 - SUPREME COURT] despite the fact that the AO was informed of the amalgamating company having ceased to exist as a result of the approved scheme of amalgamation, the jurisdictional notice was issued only in its name. The basis on which jurisdiction was invoked was fundamentally at odds with the legal principle that the amalgamating entity ceases to exist upon the approved scheme of amalgamation. Participation in the proceedings by the appellant in the circumstances cannot operate as an estoppel against law. The stand of the Revenue that the reassessment proceedings could be initiated for a period prior to the specified date as per the scheme of amalgamation even against a non-existent entity, is an argument which is clearly untenable in view of the ratio of the aforementioned judgments. WP allowed.
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