Assessment barred by limitation as court order doesn’t contain any finding/ direction as contemplated u/s. 153(6)

Shell India Markets Private Limited Vs DCIT (Bombay High Court)

Bombay High Court held that this court order doesn’t contain any ‘finding’ or ‘direction’ as contemplated by provisions of section 153(6) and consequently no order of assessment could be passed in view of bar of limitation in section 153(1) of the Income Tax Act.

Facts- The present Petition, filed under Article 226 of the Constitution of India, 1950, prays for orders to quash and set aside (i) the impugned notice dated 17^th July 2025 issued u/s. 143(2) of the Income Tax Act, 1961, (ii) a notice dated 26^thAugust 2025 issued u/s. 142(1) of the Act, and (iii) all proceedings pursuant thereto for the Assessment Year 2007-08.

Notably, for the A.Y.2007-08, the erstwhile assessee, i.e., Shell Technology India Private Limited (“STIPL”) filed its return of income on 30^thOctober 2007. Thereafter, the erstwhile assessee, STIPL merged with the Petitioner, Shell India Markets Private Limited, with effect from 01^st April 2008, pursuant to a Scheme of Amalgamation approved by the Hon’ble High Courts of Karnataka and Madras vide orders dated 22^nd February 2010 and 24^th February 2010, respectively.

The Petitioner, by way of submission dated 21^stSeptember 2010, brought to the attention of the then AO, the fact of the aforesaid amalgamation/merger and the name of the merged entity. The Petitioner also furnished copies of the orders passed by the Hon’ble High Courts. However, the AO proceeded with the assessment proceedings and issued inter alia a notice u/s. 143(2) of the Act on 19^th November 2010 in the name of ‘STIPL’, which was not in existence as on that date. Thereafter, a final Assessment Order dated 07^th October 2011 u/s. 143(3) r.w.s. 144C(13) of the Act, was also passed in the name of erstwhile entity, i.e. STIPL.