Assessment framed in the name of non existing entity due to amalgamation cannot be cured by Sec. 292B provisions

Brief of the Case:

It was held by ITAT delhi in the case of SC Jhonson Products Private Limited Vs. DCIT, that framing of assessment against a non existing entity/person is not a procedural irregularity but a jurisdictional defect and can not be cured by application of Section 292B of the Income Tax Act, 1961.

Brief Facts of the Case:

The assessee company M/s Karamchand Appliances Private Limited amalgamated with the assessee company S.C. Jhonson Products Private Limited w.e.f 1^st June, 2005. A scheme of amalgamation was filed and duly approved u/s 391 and 394 of the Companies Act, 1956 vide order dated 9^th October, 2006. The same has been recorded in the order passed by the AO u/s 143(3) of the Act on 31.12.2008 in the name of K. C. Appliances Private Limited.

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