Case Law Details
DCIT Vs. First Future Agri and Developers Ltd. (ITAT Mumbai)
Conclusion: Since AO had completed the assessment in the name of a company which had merged and was not in existence on the date the assessment order was passed, therefore, the assessment was invalid and the same was not a curable defect under section 292B.
Held: On approval of the scheme of amalgamation, assessee stood amalgamated with UTVSC Ltd and all relevant facts relating to the amalgamation of assessee was brought to the notice of AO in the course of the assessment proceedings for the impugned assessment year. AO however, still proceeded to complete the assessment in the name of assessee by an order passed on 3rd March 2015, by which time assessee had ceased to exist. It was held in Spice Infotainment Ltd. v/s CIT, [2012] 247 CTR (Del.) 500 (Del.) that assessment order passed in the name of the erstwhile company after its amalgamation / merger by virtue of an order of amalgamation passed by the High Court was invalid. The aforesaid decision of the Hon’ble Delhi High Court was upheld by the Hon’ble Supreme Court while dismissing the SLP of the Department in Civil Appeal no.285/ 2014, dated 2nd November 2014. As AO had completed the assessment in the name of a company which had merged and was not in existence on the date the assessment order was passed and that too after AO was provided with all documentary evidences during the assessment proceedings to demonstrate that the company had been amalgamated with UTVSC Ltd, therefore, the assessment was invalid and the same was not a curable defect under section 292B.
FULL TEXT OF THE ITAT JUDGEMENT
Aforesaid appeal has been filed by the Revenue challenging the order dated 26th July 2016, passed by the learned Commissioner (Appeals)–16, Mumbai, for the assessment year 2012–13.
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