2021 (1) TMI 1246 - SCH - Income Tax

Reopening of assessment u/s 147 - notice in the company name being amalgamated - As per HC if the company has ceased to exist as a result of the approved scheme of amalgamation then in that case, the jurisdictional notice issued in its name would be fundamentally illegal and without jurisdiction. It is also held that upon the amalgamating entity ceasing to exist, it cannot be regarded as a person under subsection (31) of section 2 of the Act; against whom assessment proceedings can be initiated - HELD THAT - Tax effect is below the threshold of ₹ 25 lakhs contained in the relevant circular of the Central Board of Direct Taxes. The Special Leave Petition is, therefore, not entertained and it is dismissed accordingly.

Summary

The Supreme Court of India dismissed the Special Leave Petition as the tax effect was below Rs. 25 lakhs, as per the circular of the Central Board of Direct Taxes. The Respondent did not appear.