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TMI Blog2023 (2) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... Also, in the context of reassessment proceedings, the assessing authority is always required to act mindful of the earlier assessment, if any. On the own showing of the revenue, the assessing authority of the transferor company has proceeded to issue the reassessment notice without examining the record of that assessee and without taking note of the event of merger and the subsequent order passed in the case of the merged entity i.e. the present petitioner. Unless that assessment order had been first examined by the assessing authority, it is difficult to visualize a situation where he may have entertained any reason to believe that any income had escaped assessment. The present observation has been made conscious of the discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 147 and 148 of the Income Tax Act 1961 (hereinafter referred to as the Act), on certain information received by the assessing officer arising from the transaction of sale of immovable property of value Rs. 68 crores. 3. Undisputedly, re-assessment notice was issued on 28.3.2021 in the name and at the address of the company M/s Kanpur Builders Pvt. Ltd. It remained unresponded. Consequently, re-assessment order was also passed ex-parte . In such facts, submission of learned senior counsel for the petitioner is, earlier, there existed two companies M/s Kanpur Builders Pvt. Ltd. (hereinafter referred to as the 'transferor') and M/s Kanpur Constructions Pvt. Ltd. (hereinafter referred to as the 'transferee'). Those two c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner stood thus concluded, the assessing authority of the erstwhile/transferor company chose to initiate re-assessment proceedings against that entity. Thus, re-assessment notice was first issued against the transferor company on 28.3.2021. That re-assessment notice and further notices issued in those proceedings were never directed at and were never served on the petitioner company. Those were served through e-mail on the transferor company. The same remained unreplied/unresponded. 8. Consequently, the assessing authority of the transferor company has passed the impugned re-assessment order taking a view that is in conflict with the opinion formed by the assessing authority of the present petitioner in the original assessment proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 226 of the Constitution of India. It may be relegated to the forum of alternative remedy. Last, it has been submitted, in any case, provisions of Section 150 of the Act would protect the revenue. To that extent, learned counsel for the revenue prays leave of the Court to issue fresh re-assessment notice to the petitioner company for A.Y. 2015-16. He has also placed reliance on the decision of the Supreme Court in Principal Commissioner of Income Tax (Central)-2 Vs. Mahagun Realtors (P) Ltd., (2022) SCCOnline SC 407 . 11. Having heard learned counsel for the parties and having perused the record, it is a sine qua non that a re-assessment proceedings may arise only on a valid assumption of jurisdiction. There is no plenary power t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner/transferee company and not the transferor. In fact, that was also done by means of the assessment order dated 30.12.2017. 14. What prompted the assessing authority of the transferor company to subsequently issue the reassessment notice to that company, well after the completion of the original assessment order against the present petitioner as also well after the effective date 01.04.2014 is not for the Court to speculate. As a direct consequence in law, that notice was inherently and fundamentally defective. The reasoning contained in Commissioner of Income Tax (Central)-2 Vs. Mahagun Realtors (P) Ltd. (supra) relied upon by learned counsel for the revenue is inapposite to the facts of the present case. There proceedings had ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessing authority, it is difficult to visualize a situation where he may have entertained any reason to believe that any income had escaped assessment. The present observation has been made conscious of the discussion in the original assessment order dated 30.12.2017 wherein not only the fact of the merger of the two entities had been taken note of but also that assessing authority had taken note of the transaction of sale of immovable property at Rs. 68 crores. That transaction alone appears to have given rise to re-assessment proceedings against the transferor company. Therefore, it does appear, it has escaped the attention of assessing authority to examine the effect of original assessment order dated 30.12.2017. 18. What ..... X X X X Extracts X X X X X X X X Extracts X X X X
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