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TMI Blog2023 (6) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... het Assessing Officer to frame the assessment afresh is illegal, erroneous, perverse and thus uncalled for and therefore ought to be quashed. 2. That the Appellant disputes the very initiation of the proceedings u/s 263 of the Income Tax Act, 1961 ('the Act') by Ld. Pr. CIT by setting aside assessment orders passed by the Ld. AO u/s 143(3), despite Pr. CIT having himself admitted in the notice issued u/s 263 that the Appellant had filed loan confirmation, bank statement and return of income of lenders to substantiate their genuineness and creditworthiness during the original assessment proceedings u/s 143(3). 3. That the Ld. PCIT erred on facts and in law, in invoking the provisions of section 263 of the Act, ignoring that the Ld. AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer assumed jurisdiction to make an assessment u/s 143(3) was issued in the name of M/s Chemester Food Industry a non-existent firm was invalid, hence initiation of assessment proceeding against the non-existing firm was void ab initio. The appellant disputes the very initiation of the proceedings u/s 263 of the Income Tax Act, 1961 by Ld. Pr. CIT of setting aside assessment order passed." 4. Representatives of both the sides were heard at length. Case records carefully perused. Judicial decisions relied upon by the rival representatives duly considered. 5. The additional ground taken by the assessee goes to the root of the matter. Therefore, we will address to it first. 6. Vide letter dated 01.04.2014, which was received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer issued notice dated 05.07.2016 in the name of the firm Chemester Food Industry u/s 142(1) of the Act requiring the assessee to produce the accounts/documents. The following questionnaire was attached with the notice: 8. The assessee filed detailed reply, specifically giving details sought by the Assessing Officer vide the aforementioned notice. 9. The reply of the assessee is placed at pages 49 and 50 of the paper Book. 10. Not satisfied with the reply of the assessee, the Assessing Officer once again issued notice dated 18.07.2016 in the name of Chemester Food Industry asking the assessee to furnish complete details of all unsecured loans received during the year from the following parties: (i) Dhansamridhi Finance Private Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so furnished to the Assessing Officer alongwith letter dated 01.04.2014. 14. These clinching evidences were very much before the Assessing Officer who grossly failed to take cognizance of the documents and proceeded in framing the assessment u/s 143(3) of the Act in the name of a non existing person. 15. The Hon'ble Supreme Court in the case of Maruti Suzuki India Ltd 107 Taxmann.com 375 has held that : "Issuance of jurisdictional notice and assessment order thereafter passed in the name of non-existing company i.e. amalgamating company having ceased to exist as a result of approved scheme of amalgamation is a substantive illegality and not a procedural violation of nature adverted to in section 292B and hence being without jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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