9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 892 - AT - Income TaxValidity of assessment and jurisdiction - non-existent entity consequent to the order of merger - Held that - The proceedings have been continued in the name of GE rather than, as was warranted, in the name of Wipro even after the appointed date of 1.4.2012 rendered by both the Hon ble High Courts of Karnataka and Delhi. We find that the draft order of assessment was passed on 28.2.2014 after the last hearing took place in both the Hon ble High Courts of Karnataka on 24.7.2013 and Delhi on 27.8.2013. Thereafter, even though Wipro filed the objections in Form No. 35A before the DRP, the DRP has continued the proceedings in the hands of GE rather than Wipro . We also find that the impugned final order of assessment for Assessment Year 2010-11 has also been passed by order dt.30.12.2014 in the hands of GE which was nonexistent as on the date of the order of assessment. In our view, the legal position is very clear in that any order made on a non-existent entity is a nullity and invalid. Applying these principles to the case on hand, we hold that the impugned final order of assessment for Assessment Year 2010-11 dt.30.12.2014 passed in the name of GE is null and void and the assessment is therefore held to be invalid and accordingly cancelled as the same has been passed after the appointed date 1.4.2012 on a non-existent entity. - Decided in favour of assessee.
Issues Involved:
1. Validity of Assessment/Jurisdiction 2. Issue of Transfer Pricing 3. Issue of Interest under Sections 234B, 234C, and 234D Issue-wise Detailed Analysis: Validity of Assessment/Jurisdiction: The primary issue raised by the assessee was the validity of the assessment order passed against a non-existent entity due to a merger. The assessee company, originally known as GE Medical Systems Pvt. Ltd. ('GE'), merged with Wipro GE Healthcare Pvt. Ltd. ('Wipro') effective from 1.4.2012, as approved by the Karnataka and Delhi High Courts. The assessee contended that the assessment order dated 30.12.2014 was invalid as it was passed in the name of 'GE,' which had ceased to exist post-merger. The Tribunal agreed with the assessee, citing legal precedents that an order passed on a non-existent entity is null and void. The Tribunal referred to the decisions in *Impsat (P) Ltd. v. ITO*, *Hewlett Packard India Pvt. Ltd.*, and *Monsanto India Ltd.*, and concluded that the assessment order was invalid and consequently cancelled it. Issue of Transfer Pricing: The Tribunal did not address the merits of the transfer pricing adjustments due to the conclusion on the validity of the assessment. The initial adjustments proposed by the Transfer Pricing Officer (TPO) amounted to Rs. 83,12,53,508, which were added to the returned income of the assessee. The assessee raised multiple grounds challenging the jurisdiction of the TPO, the methodology adopted, and the comparables selected. However, these issues were rendered moot by the Tribunal's decision on the validity of the assessment order. Issue of Interest under Sections 234B, 234C, and 234D: Similarly, the Tribunal did not delve into the issues related to the interest levied under Sections 234B, 234C, and 234D of the Income Tax Act. The assessee had contested the levy of interest on various grounds, including lack of opportunity to contest the interest and incorrect computation. These grounds were not considered due to the Tribunal's finding that the assessment order itself was invalid. Conclusion: The Tribunal allowed the assessee's appeal on the grounds of the invalidity of the assessment order due to it being passed on a non-existent entity post-merger. Consequently, the Tribunal did not address the other grounds related to transfer pricing adjustments and interest levies. The cross-appeal by the Revenue was dismissed.
|
