2022 (2) TMI 1377 - AT - Income Tax

Validity of assessment u/s.143(3) r.w.s. 144C against non-existent company - HELD THAT - We noted that in the case of M/s. Maruti Suzuki Ltd. 2019 (7) TMI 1449 - SUPREME COURT as noted the fact that the draft assessment order and the final assessment order contained the name of both amalgamated and amalgamating companies but despite the fact both name existed, the Hon ble Supreme Court held that the assessment framed is on non-existent company and in view of the above fact that the assessment is framed on a non-existent company - Even the provisions of section 292B of the Act does not help the Revenue as it is not a curable defect. Thus issue is squarely covered by the decision of Hon ble Supreme Court in the case of M/s. Maruti Suzuki Ltd., supra, we quash the assessment and allow the appeal of assessee.

Summary

Issues involved:
1. Admissibility of additional grounds raised by the assessee regarding jurisdictional issues in the assessment order.
2. Validity of assessment made on a non-existent company post-amalgamation.

Detailed analysis:
Issue 1: The appellant raised additional grounds regarding jurisdictional issues in the assessment order. The appellant argued that the assessment was framed on a non-existent company, which had been amalgamated with another company. The appellant contended that this jurisdictional issue was crucial and should be admitted and adjudicated as it goes to the root of the matter. The appellant cited the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. CIT to support their argument. The CIT-DR opposed the admissibility of the additional grounds, citing the delay in raising the issue. The ITAT admitted the issue, noting that the facts were available on record and the appellant had raised this issue before the DRP during the adjudication proceedings.

Issue 2: The assessment order was passed on a non-existent company post-amalgamation, which the appellant argued was invalid and against the law. The appellant highlighted that the provisions of section 292B of the Income Tax Act did not apply in this case. The appellant relied on the decision of the Hon'ble Supreme Court in the case of PCIT vs. Maruti Suzuki India Limited to support their argument. The ITAT noted that the assessment order was based on a non-existent company, which the Hon'ble Supreme Court had previously deemed a substantive illegality. The ITAT referred to the decision in the case of Maruti Suzuki India Limited and quashed the assessment, allowing the appeal filed by the assessee.

In conclusion, the ITAT Chennai allowed the appeal filed by the assessee, quashing the assessment made on a non-existent company post-amalgamation, based on the jurisdictional issues raised by the appellant. The decision was pronounced in court on 22nd February 2022 at Chennai.