2019 (3) TMI 214 - AT - Income Tax

Assessment order against a company not in existence - scheme of amalgamation - curable defect u/s 292B - HELD THAT - Assessing Officer has completed the assessment in the name of a company which has merged and is not in existence on the date the assessment order was passed. That too, even after the Assessing Officer was provided with all documentary evidences during the assessment proceedings to demonstrate that the company has been amalgamated with UTV Software Communications Ltd. That being the case, neither the aforesaid decision of SPICE ENFOTAINMENT LTD 2011 (8) TMI 544 - DELHI HIGH COURT nor the provisions contained under section 292B of the Act would come to the rescue of the Department. - Decided in favour of assessee.

Summary

Issues:
- Validity of assessment order passed in the name of a non-existent company post-merger.

Analysis:
1. Issue of Validity of Assessment Order:
- The Department challenged an order passed by the Commissioner (Appeals) for the assessment year 2012-13, questioning the validity of the assessment order due to the company's non-existence post-merger.
- The assessee, a real estate developer, merged with another company on 1st April 2013, approved by the High Court. Despite providing documentary evidence of the merger to the Assessing Officer, the assessment order was issued in the name of the non-existent company on 3rd March 2015.
- The Commissioner (Appeals) found the assessment order invalid due to the jurisdictional error of passing it in the name of a non-existent entity, leading to the Department's appeal before the Tribunal.

2. Arguments and Legal Precedents:
- The Departmental Representative argued that the assessment was valid as the return was filed in the name of the present assessee, and any error could be rectified under section 292B of the Act without causing prejudice.
- The Authorised Representative contended that the jurisdictional error of passing the assessment order in the name of a non-existent company cannot be rectified under section 292B. Citing legal precedents like Spice Infotainment Ltd. v/s CIT, the representative emphasized that such errors render the assessment order invalid.

3. Tribunal's Decision:
- The Tribunal examined the facts and legal precedents, noting that the company ceased to exist post-merger, and all relevant details were provided to the Assessing Officer.
- Relying on Spice Infotainment Ltd. case and other decisions, the Tribunal upheld the Commissioner (Appeals)'s decision, emphasizing that passing an assessment order in the name of a non-existent company is invalid.
- Distinguishing the Skylight Hospitality LLP case, where the assessment proceedings were ongoing, the Tribunal concluded that in this case, the company had already merged and ceased to exist when the assessment order was passed.

4. Conclusion:
- The Tribunal dismissed the Revenue's appeal, affirming the Commissioner (Appeals)'s decision that the assessment order passed in the name of a non-existent company post-merger was invalid.
- The decision was based on established legal principles and the specific facts of the case, highlighting the importance of correctly identifying the entity being assessed in such situations.