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| The Tax Publishers2019 TaxPub(DT) 4931 (SC) : (2019) 416 ITR 0613 : (2019) 309 CTR 0433 : (2019) 265 TAXMAN 0515 INCOME TAX ACT, 1961
Section 143(3)
Notice under section 143(2) under which jurisdiction was assumed by AO was issued to a non-existent company. The assessment order was also issued against amalgamating company. This was a substantive illegality and not a procedural violation of the nature adverted to in section 292B. Accordingly, assessment order framed in the name of non-existing person was void ab initio.
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Assessment - Validity - Issuance of section 143(2) notice and framing of assessment in the name of erstwhile amalgamating company - AO taking plea of section 292B
AO despite being as informed of the fact of amalgamating company having ceased to exist as a result of approved scheme of amalgamating issued section 143(2) notice in its name and framed assessment order in the name of amalgmating company. To rectify the error AO took plea of section 292B. Held: Notice under section 143(2) under which jurisdiction was assumed by AO was issued to a non-existent company. The assessment order was also issued against amalgamating company. This was a substantive illegality and not a procedural violation of the nature adverted to in section 292B. Accordingly, assessment order framed in the name of non-existing person was void ab initio.
Followed:C.I.T., New Delhi v. M/s Spice Enfoainment Ltd. (Civil Appeal No. 285 pf 2014 etc. etc.,
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE SUPREME COURT OF INDIA
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