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TMI Blog2025 (1) TMI 1233X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 263 of the Act is void and hence, liable to be set-aside.
In the case of PCIT v. Maruti Suzuki India Ltd [2019 (7) TMI 1449 - SUPREME COURT] held that where assessee company was amalgamated with another company and thereby lost its existence, assessment order passed subsequently in name of said non-existing entity, would be without jurisdiction and was to be set aside. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... nced in appellant's own case and group concern deciding issue of CSR in favour of appellant. 4. In law and in the facts and circumstances of the Appellant's case, the order passed by the Ld. CIT may please be held to be unjustified, unwarranted and may please be quashed. 5. The appellant craves leave to add to amend or to raise any further grounds of appeal as case may arise." 3. The assessee has also raised the following additional grounds of appeal: "1. On facts and circumstances of the appellant's case, Ld. PCIT has erred in passing order in the name of a non-existing entity, though duly intimated by the assessee during the revision proceedings, therefore, the order passed by PCIT deserves to be quashed. 2. The appellant craves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PCIT by the assessee during the course of revision proceedings. Therefore, on this ground itself, order under Section 263 of the Act is liable to be set-aside. The Counsel for the assessee placed reliance on various judicial precedents which have upheld the principle that no order can be passed in the name of a non-existing entity and such order framed in the name non-existent entity is void-ab-initio and hence liable to be set-aside. 7. On going through the case, we observe that vide letter dated 14.03.2023 the fact that the assessee viz. "Adani Power Maharashtra Ltd." had amalgamated with "Adani Power Ltd." was intimated to the Ld. PCIT. It would be useful to reproduce the relevant extracts of the letter dated 14.03.2023 addressed to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under Section 263 of the Act was passed (30.03.2023), it is an undeniable fact that the fact of the assessee company having amalgamated into Adani Power Ltd. was brought to the knowledge of Ld. PCIT. We also take note of the fact that the PCIT initiated proceedings under Section 263 of the Act by issuing notice dated 07.03.2023, fixing the date of hearing for 15.03.2023. It is noted that on this date itself, vide letter dated 14.03.2023 the assessee intimated the Ld. PCIT about the fact of M/s. Adani Power Maharashtra Ltd., having amalgamated into M/s. Adani Power Ltd. The contents of the above letter filed by the assessee to Ld. PCIT have not been disputed by the Ld. D.R. The view of the High Courts and Tribunals is unanimous on this iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai - Trib.), the ITAT held that where draft assessment order under section 144C was passed in name of amalgamating company, which was a non-existent entity in eyes of law on date of passing of such order, it became an illegal order and, thus, entire assessment proceedings based on such an invalid draft assessment order were void ab initio and deserved to be quashed. In the case of Siemens Ltd. v. DCIT 147 taxmann.com 118 (Mumbai - Trib.), the ITAT held that where draft assessment order under section 144C was passed in name of amalgamating company, which was a non-existent entity on date of passing of such order, it became an illegal order and thus, entire assessment proceedings based on such an invalid draft assessment order were void ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act suppressing the fact of amalgamation. In the light of these facts, Hon'ble Supreme Court held that since the conduct of the assessee reflected that it consistently projected itself as assessee, assessment order passed in the name of assessee amalgamating company was valid. However, in the instant facts, we have noted that on the first date of hearing scheduled in the 263 proceedings, the fact of assessee company having amalgamated into Adani Power Ltd. was brought to the knowledge of Ld. PCIT and hence, in our view, the case of Mahagun Realtors Pvt. Ltd. (supra) would have no applicability to the instant facts, since the same was rendered on a different set of facts. In the result, assessee's appeal challenging the validity of 263 orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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