PCIT Vs Boeing India Pvt. Ltd. (Delhi High Court)
Delhi High Court in PCIT v. Boeing India Pvt. Ltd. upheld the ITAT’s decision quashing the assessment order for AY 2016–17 on the ground that it was passed in the name of a non-existent entity. Boeing International Corporation India Pvt. Ltd. had filed its return in November 2016, but later amalgamated with Boeing India Pvt. Ltd. pursuant to a scheme approved on 27.02.2018 with effect from 01.04.2017. The assessee duly informed the Assessing Officer about the amalgamation in April 2018. Despite this knowledge, the Assessing Officer issued the draft assessment order and later the final assessment order dated 30.03.2021 in the name and PAN of the erstwhile company that had already ceased to exist. Although some proceedings such as the Transfer Pricing Officer’s order and DRP directions were issued in the name of the amalgamated entity, the final assessment continued to be framed against the non-existent company. The Revenue argued that the error occurred due to a technical limitation or glitch in the Income Tax Business Application (ITBA) portal and contended that the defect was curable under Section 292B of the Income-tax Act. The Court rejected this argument, holding that once the Assessing Officer was informed about the amalgamation, it was incumbent upon the department to proceed against the correct legal entity. Relying on precedents including Maruti Suzuki, Spice Entertainment, and Sony Mobile Communications, the Court held that an assessment framed in the name of a non-existent entity constitutes a jurisdictional defect and is void ab initio, not a mere procedural irregularity curable under Section 292B. The Court further observed that technological or administrative glitches in departmental systems cannot override statutory requirements. Consequently, it found no substantial question of law in the Revenue’s appeal and dismissed it, affirming the ITAT’s order quashing the assessment.
