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TMI Blog2005 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... is a private limited company. Under orders of the Allahabad High Court it amalgamated with another company by name MCORP Global Pvt. Ltd., with effect from 1-1-2002, There was a scheme of amalgamation which was annexed to the orders of the Allahabad High Court which were passed on 30-10-2002. Under this order, all the property rights and powers of the transferor of company were transferred without any further act or deed to the transferee company which was MCORP. It may be clarified that in all seven companies amalgamated with MCORP of which the assessee was one. The orders of the Allahabad High Court also provided that all the liabilities and duties of the transferor company were also transferred to MCORP. Paragraph-3 of the order provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order under section 143(3) on 6-3-2004. By this assessment order, the assessee was assessed on a taxable income of ₹ 51,673 after disallowance and additions. 4. The assessee appealed and submitted that since it stood dissolved with effect from 1-1-2002 pursuant to the orders of the High Court consequent upon the amalgamation, it became a non-entity with effect from the above date and the assessment was null and void. Grounds were also taken against the additions and disallowances. 5. The CIT(A) disposed of the matter in the following words:- "I have considered the issue carefully. Since the return has been filed in the name of M/s. Better Investment Pvt. Ltd. The Assessing Officer was correct while passing the order in the na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer was informed in writing along with the death certificate that the assessee cannot be assessed. No notice was issued by the Assessing Officer, despite the above evidence, in the name of the legal heirs of R.C. Jain. He proceeded to complete the assessment in February 2003, after issuing fresh notices again in the name of the deceased. The Hon'ble High Court quashed the assessment on the ground that despite being informed of the death of the assessee, the assessment was still made on the deceased. In the present case, all the notices issued by the Assessing Officer were to the company which was dissolved with effect from 1-1-2002. The assessee had informed the Assessing Officer that the assessee had amalgamated with another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olved under section 560 of the Companies Act and it was held that on dissolution it ceased to exist and there was no provision in the Income-tax Act to make an assessment upon a dissolved company.
9. The learned DR submitted that there would be escapement of income for the period 1-4-2001 to 31-12-2001 which would be assessed neither in the hand of the present assessee nor in the hands of the amalgamated company. This is a matter which the Income-tax authorises concerned may take note of. So far as the present appeal is concerned I have to dispose of the same in accordance with the law. It is for the Departmental authorities to take remedial action, it required and if so advised. The appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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