Assessment in the name of non-existent company was invalid

Amdocs Development Centre India LLP Vs DCIT (ITAT Pune)

It is no more res-integra that the order passed in the name of non-existent entity is invalid and unsustainable in the eye of law. The company “Amdocs Business Services Private Limited” was merged with “Amdocs Development Centre India Private Limited” vide order of Hon’ble Bombay High Court dated 10^th May, 2013, approving the scheme of amalgamation w.e.f. 1^st April, 2012. Thus, after the date of merger has been notified in the order of Hon’ble High Court, merged company ceases to subsist. The assessee intimated Assessing Officer about merger of the two companies vide communication dated 23rd July, 2013. The copy of said communication by assessee to Assessing Officer is placed at page 205 of the paper book. Despite intimation regarding merger of “Amdocs Business Services Private Limited” with “Amdocs Development Centre India Private Limited”, the Assessing Officer issued notice u/s.143(2) of the Act to the assessee company in the name of erstwhile company which was not in existence on 8t^h August, 2013. We further observe that during the course of assessment proceedings, various communications were made by assessee to the Assessing Officer in the name of new company and it was specifically mentioned in each such communication that erstwhile “Amdocs Business Services Private Limited” has been merged with “Amdocs Development Centre India Private Limited”. The assessee discharged his onus of intimating the fact of merger of company with “Amdocs Development Centre India Private Limited”. The Assessing Officer despite having intimation regarding merger of “Amdocs Business Services Private Limited” with “Amdocs Development Centre India Private Limited”, passed assessment order in the name of company which had ceased to exist on the date of passing assessment order. The assessment made in the name of non-existent company is invalid and unsustainable in the eye of law.

FULL TEXT OF THE ITAT JUDGMENT

These cross appeals by the assessee and the Revenue are directed against the order of Commissioner of Income Tax (Appeals)-1, Pune dated 22.11.2016 for the assessment year 2011-12.

2. The brief facts of the case as emanating from records are: The assessee is engaged in product development as well as marketing, customization, on-going support, warranty services, etc. The assessee during the period relevant to the assessment year under appeal had entered into certain international transactions with ‘Associated Enterprises’. For benchmarking international transactions, reference was made to Transfer Pricing Officer (TPO) u/s.92CA(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The Assessing Officer after receiving the order dated 10.09.2014 from TPO made adjustment in the international transactions as proposed and also made certain other additions/disallowances.

Please become a Premium member. If you are already a Premium member, login here to access the full content.