|The Tax Publishers2021 TaxPub(DT) 0014 (Bang-Trib)
INCOME TAX ACT, 1961
Assessee framed in the name of non-existent entity, i.e., amalgamating company, was not sustainable in the eyes of law, being a nullity.
Assessment - Validity - Framing of assessment in name of non-existent amalgamating company -
On 22-6-2005, i2 Technologies Software Pvt. Ltd. merged with i2 Technologies India Pvt. Ltd. and became one entity. i2 Technologies Software Pvt. Ltd. ceased to exist as an entity as it was dissolved without process of winding up. Assessee filed return of income on 22-7-2005 in the name of M/s. i2 Technologies Software Pvt. Ltd. On 27-6-2005, i2 Technologies India Pvt. Ltd. filed a revised ROI declaring consolidated income of merged entities. i2 Technologies Ltd. changed its name to M/s. JDA Software Pvt. Ltd. and subsequently to M/s. Blue Yonder India (Pvt.) Ltd. on 29-12-2006, AO passed order of assessment in the name of i2 Technologies Software Pvt. Ltd. holding that revised ROI filed by i2 Technologies (India) Pvt. Ltd., the merged entity was invalid. On appeal, the CIT(A) upheld the order passed by AO. Held: Prior to AO assuming jurisdiction by issuing notice under section 143(2) Scheme of Amalgamation had already been approved. AO was duly informed about the factum of assessee being no longer in existence. Once scheme of amalgamation was approved, amalgamating company ceased to exist and therefore, could not be regarded as 'person' under section 2(31) and, therefore, assessment so framed in the name of non-existent entity was not sustainable in the eyes of law, being a nullity.
Applied:Pr. CIT v. Maruti Suzuki India Ltd. [Civil Appeal No. 5409 of 2019) (SLP No. 4298 of 2019] Judgment, dated 25-7-2019) : 2019 TaxPub(DT) 4931 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2004-05
IN THE ITAT, BANGALORE BENCH
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