Vertex Customer Management India Pvt. Ltd. Vs DCIT (ITAT Delhi)
Conclusion: Framing of an assessment against a non-existent amalgamating entity was not procedural irregularity but a jurisdictional defect not covered under section 292B, therefore, assessment made by AO was nullity in the eyes of law and the same was liable to be quashed.
Held: The issue arose for consideration was AO on being intimated/informed of the fact of amalgamation still the AO chose to pass the assessment order in the name of the non-existent company amalgamating company. Assessee contended that since the order had been passed in the name of a non-existent company, therefore, the same had to be quashed and the provisions of section 292B would not come to the rescue of the Department. It was held framing of an assessment against a non-existent entity was not procedural irregularity but a jurisdictional defect not covered under section 292B and therefore, assessment made by AO was nullity in the eyes of law and was liable to be quashed.
FULL TEXT OF THE ITAT JUDGMENT
This appeal filed by the assessee is directed against the order dated 23.10.2015 passed u/s 143(3)/144C of the I.T. Act, 1961 for assessment year 2011-12.
2. Although a number of grounds have been raised by the assessee in the grounds of appeal, however, ld. counsel for the assessee confined his argument to ground of appeal no.2 which reads as under :-
“2. Based on the facts and circumstances of the case, the learned AO has erred in completing the assessment on the non-existing amalgamating entity (bearing PAN No.AAGCS0438M) instead of the amalgamated/ successor company. Hence, the assessment order passed under section 143(3) read with section 144C of the Act is void ab-initio and the same is liable to be quashed.”
3. counsel for the assessee referring to the draft assessment order dated 10.05.2015 submitted that the name of the assessee has been mentioned as M/s Vertex Customer Services India Pvt. Ltd.. Referring to the order of the DRP dated 21.09.2015, he submitted that the name of the assessee has been mentioned as under :-
“M/s Vertex Customer Management India Limited (Formerly Vertex Customer Services Private Limited) (Now Merged with Vertex Customer Management India Private Limited).”
4. Referring to the final assessment order passed by the Assessing Officer subsequent to the order of the DRP vide order u/s 143(3)/144 dated 23.10.2015, he submitted that the Assessing Officer has passed the order in the name of M/s Vertex Customer Services India Pvt. Ltd.. Referring to the sequence of events, ld. counsel for the assessee drew the attention of the Bench to the following dates :-
Sequence of Events
