9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (9) TMI 482 - AT - Income TaxValidity of final assessment order passed against non-existent entity - assessee company has been amalgamated with the appellant company - name of the company was struck off from the rolls of companies maintained by the Registrar of companies - HELD THAT - The revenue authorities were aware about the amalgamation of AOK In-house Factoring Services Private limited with 3i Infotech BPO Limited. AO has passed the assessment order against the non-existent company. The assessment order passed in the name of a non-existent entity would be a nullity and no consequence. When the company has been delisted and amalgamated with the assessee company the assessment order passed by AO and confirmed by CIT(A) is nullity. The matter is squarely covered in favour of the assessee and against the Revenue by the Judgment of Spice Entertainment Ltd 2011 (8) TMI 544 - DELHI HIGH COURT Respectfully following the decisions cited above the assessment order liable to be quashed and quashed accordingly - Appeal of assessee is allowed.
Issues:
Validity of final assessment order passed by a non-existent entity. Analysis: The case involves an appeal by the assessee against the order of the Commissioner of Income Tax (Appeals) concerning the assessment order for the assessment year 2012-13. The main contention raised by the assessee was regarding the validity of the reassessment proceedings against the amalgamating company, which had ceased to exist due to a merger with another company. The assessee argued that no assessment can be made against a non-existent entity, and therefore, the assessment order passed under section 144 r.w.s. 147 of the IT Act was invalid and bad in law. The assessee's case revolved around the fact that the amalgamating company had not filed its return of income for the relevant assessment year as it had been merged with another company. The Assessing Officer proceeded to assess the total income of the assessee at a certain amount, which was challenged by the assessee before the Ld CIT(A) and subsequently before the Appellate Tribunal. The key issue to be decided was the validity of the final assessment order passed by a non-existent entity. The assessee contended that the assessment order passed in the name of a dissolved company was illegal, void ab-initio, and without jurisdiction. Citing various legal precedents, the assessee argued that assessments framed in the name of non-existent entities or dead persons are jurisdictional defects and render the orders void. The assessee relied on decisions from the Delhi High Court, Supreme Court, and other tribunals to support their argument. On the other hand, the Departmental Representative supported the findings of the lower authorities and sought the dismissal of the appeal. However, after hearing both parties and examining the material on record, the Appellate Tribunal found merit in the assessee's argument. The Tribunal referred to a decision of the Delhi High Court in a similar case and concluded that the assessment order passed against a non-existent entity was a nullity and of no consequence. Therefore, the Tribunal allowed the appeal of the assessee and quashed the assessment order. In conclusion, the Appellate Tribunal held that the final assessment order passed by the Assessing Officer against a non-existent entity was invalid and null. The Tribunal relied on legal precedents and the principle that assessments against dissolved entities are jurisdictional defects, leading to the quashing of the assessment order in favor of the assessee.
|
