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| The Tax Publishers2020 TaxPub(DT) 0032 (Mum-Trib) INCOME TAX ACT, 1961
Section 144
Where even after the DRP taking into account the fact of merger and passing order by giving directions to AO in name of merged entity, AO continued to frame the final assessment order in name of erstwhile amalgamating company, therefore, it could be safely concluded that AO had passed draft assessment order as well as final assessment order in name of non-existent entity despite having due intimation of the fact of merger duly approved by High Court.
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Assessment - Best judgment assessment - Lack of jurisdiction by AO -
This appeal was preferred by assessee against the final assessment order passed by AO under section 143(3) read with section 144C(13), pursuant to directions of DRP under section 144C(5). Though assessee had raised various grounds on merits of various additions/disallowances made by AO and confirmed by CIT(A), assessee had raised an additional ground stating that assessment was framed on a non-existing entity and accordingly is void ab initio. Held: Even after the DRP taking into account the fact of merger and passing order by giving directions to AO in the name of merged entity, AO continued to frame final assessment order in the name of erstwhile amalgamating company. Hence, it could be safely concluded that AO had passed draft assessment order as well as final assessment order in the name of non-existent entity despite having due intimation of the fact of merger duly approved by High Court. Therefore, assessment order framed by AO deserved to be quashed as the same was without jurisdiction, being framed on a non-existent entity.
REFERRED : Pr. CIT v. Maruti Suzuki India Limited (2019) 416 ITR 613 (SC) : 2019 TaxPub(DT) 4931 (SC)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, MUMBAI BENCH
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