2019 (2) TMI 325 - SC - Income Tax

Validity of reopening of assessment - notice against non existent entity / amalgamated company - eligibility of reasons to believe - notice not addressed in the correct name - Held that - In the present case, it has been submitted that, as a matter of fact, the draft assessment order and the final assessment order make a clear reference to the fact that M/s. Suzuki Powertrain India Ltd. amalgamated with M/s. Maruti Suzuki India Ltd. Moreover, it has been urged that there was no prejudice to the assessee since it was evident to it at all times that the assessment which was carried out was with respect to the erstwhile business of M/s. Suzuki Powertrain India Ltd., which has been amalgamated with the successor company. In view of the above submissions, we direct that notice shall issue. See SKY LIGHT HOSPITALITY LLP VERSUS ACIT 2018 (2) TMI 1093 - DELHI HIGH COURT

Summary

Issues:
1. Dismissal of Special Leave Petition by Supreme Court
2. Reference to judgment of Delhi High Court in the case
3. Submission regarding amalgamation of companies in assessment order
4. Issuance of notice and filing of affidavits

Dismissal of Special Leave Petition by Supreme Court:
The Supreme Court considered the dismissal of a Special Leave Petition filed by the Revenue in view of a previous order. The Revenue's counsel highlighted the dismissal of the petition based on a prior court order, emphasizing the relevance of the judgment in another case. The Court acknowledged the submissions and directed the issuance of a notice to proceed further.

Reference to judgment of Delhi High Court in the case:
The counsel for the Revenue referred to a judgment of the Delhi High Court in a specific case. The Supreme Court noted this reference and the subsequent dismissal of a Special Leave Petition related to the Delhi High Court judgment. The dismissal was based on the understanding that a clerical error in the notice could be corrected under the Income Tax Act. The Court took note of this context in considering the current matter.

Submission regarding amalgamation of companies in assessment order:
The case involved a submission regarding the assessment order, which indicated the amalgamation of two companies. It was argued that there was no prejudice to the assessee as the assessment pertained to the business of the amalgamated company. The Court considered this submission and directed the issuance of a notice, with the respondent's counsel accepting the same.

Issuance of notice and filing of affidavits:
Following the submissions and directions, the Court ordered the issuance of a notice to the respondent. The respondent's counsel accepted the notice. Additionally, the Court directed the filing of a counter affidavit within four weeks and a rejoinder affidavit within two weeks thereafter. The case was listed for further proceedings after the affidavits were filed.