INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Assessment order in the name of non existent company under section 153A - Scheme of amalgamation adopted

A search and seizure action under section 132 was carried out in the business premises of the assessee. Accordingly, notice under section 153A was issued to the assessee and in compliance to the same, return was filed. Assessment under section 153A/143(3) was completed and assessment was passed in the name of M/s. M. Assessee submitted before CIT(A) that assessment was framed in the name of an entity, which was non-existent on the day of passing of the Order because of the fact that such company stood amalgamated with another company with effect from 1-4-2014, as such, assessment framed under section 153A/143(3) in the name of a non-existent entity was nullity and liable to be quashed. CIT(A) accepted the submission of assessee. Held: Framing order in the name of non-existent entity was not a procedural defect curable under section 292B or under any other provision of the Act but it was a jurisdictional defect and hence any order passed in the name of non-existing person was void ab initio. Therefore, appeal of Revenue was dismissed.

Relied:Pr. CIT, New Delhi v. Maruti Suzuki India Limited (2019) 107 Taxman 375 (SC) : 2019 TaxPub(DT) 4931 (SC), BDR Builders and Developers (P) Ltd. v. The Asstt. CIT, & Another Writ Petition (Del.) 3175/2015, dated 9-1-2017] : 2017 TaxPub(DT) 0235 (Del-HC), CIT (C)-II v. Micra India (P) Ltd. [ITA 441/2013, ITA 444/2013, ITA 445/2013, ITA 446/2013, ITA 452/2013, ITA 461/2013, dt. 22-1-2015] : 2015 TaxPub(DT) 2261 (Del-HC), CIT-III v. Dimension Apparels (P) Ltd. (2015) 370 ITR 288 (Del) : 2014 TaxPub(DT) 4172 (Del-HC), Spice Enfotainment Ltd. v. CIT (Printed as: Spice Entertainment Ltd. v. Commissioner of Service Tax) (2012) 247 CTR 500 (Del.) : 2012 TaxPub(DT) 1030 (Del-HC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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