Sunteck Realty Ltd Vs DCIT (Bombay High Court)
In Sunteck Realty Ltd. vs DCIT, the Bombay High Court examined whether reassessment proceedings initiated under the Income Tax Act, 1961 could be sustained when the notice was issued in the name of an entity that had ceased to exist due to corporate restructuring.
The writ petition challenged the order dated 31 August 2024 passed under Section 148A(d) of the Income Tax Act and the notice issued under Section 148 for Assessment Year (AY) 2018–19. The petitioner argued that the impugned notice was invalid because it had been issued to a non-existent entity.
The petitioner company was the successor to an entity originally known as Starlight Systems (I) LLP. The LLP had filed its return of income for AY 2018–19, which was processed under Section 143(1). Later, the case was selected for scrutiny and an assessment order dated 27 September 2021 was passed under Section 143(3) read with Section 144B, making certain additions.
Subsequently, reassessment proceedings were initiated under Section 148 in the name of Starlight Systems (I) LLP. During the pendency of these proceedings, the LLP was converted into Starlight Systems (I) Pvt. Ltd. on 29 April 2022. Thereafter, a scheme of amalgamation was proposed whereby the private limited company would merge with the petitioner company. The petitioner informed the jurisdictional authorities about the proposed amalgamation and requested them to submit their representations before the National Company Law Tribunal (NCLT).
