2018 (8) TMI 1774 - AT - Income Tax

Rectification of mistake - computation of income was made and notice of demand was issued in the name of M/s. Akzo Nobel (Chemicals) India Limited, which is the amalgamating company (non-existent entity) and not in the name of M/s. Akzo Nobel India Limited, which is the amalgamated company - HELD THAT - An error has crept in the order of Tribunal and hence, this Corrigendum is being continued. The revised para shall read as under - 9. In view of the above said facts and circumstances of the present case before us where final assessment order under section 143(3) r.w.s. 144C(13) of the Act, demand notice under section 156 of the Act and even computation of income were made in the name of amalgamating company i.e. Akzo Nobel Chemicals (India) Limited; despite the facts, TPO/DRP passed order/directions in the name of amalgamated company i.e. Akzo Nobel India Limited; assessment order passed by the Assessing Officer is invalid being issued in the name of non existing entity, hence is cancelled. Thus, additional grounds raised by assessee are allowed. Since the assessment order is held to be invalid, the issue raised on merit becomes academic. Accordingly, grounds raised by assessee are allowed.

Summary

Issues:
1. Correction of order dated 05.06.2018 regarding computation of income and notice of demand issued in the wrong company name.
2. Validity of assessment order issued in the name of a non-existent entity.

Issue 1 - Correction of Order:
The assessee moved an application for the correction of the Tribunal's order, pointing out an error in the computation of income and the notice of demand issued in the name of the wrong company. The original order referred to M/s. Akzo Nobel India Limited instead of M/s. Akzo Nobel Chemicals (India) Limited, the correct amalgamating company. A corrigendum was issued to rectify this error in the order.

Issue 2 - Validity of Assessment Order:
The Tribunal acknowledged another error in the order where the final assessment, demand notice, and computation of income were made in the name of the amalgamated company, Akzo Nobel Chemicals (India) Limited. However, the Transfer Pricing Officer (TPO) and Dispute Resolution Panel (DRP) passed orders in the name of the amalgamating company, Akzo Nobel India Limited, a non-existent entity. Consequently, the assessment order was deemed invalid and canceled. The assessee's additional grounds were allowed, and since the assessment order was invalid, the merits of the issue became academic, leading to the allowance of the grounds raised by the assessee.

In conclusion, the Tribunal issued a corrigendum to rectify errors in the order related to the company names, ensuring accuracy in the references made in the judgment. The assessment order issued in the name of a non-existent entity was declared invalid, leading to the cancellation of the order and the allowance of the assessee's additional grounds.