Case Law Details
Atos India Pvt. Ltd. Vs DCIT (ITAT Mumbai)
The issue under consideration is whether the assessment initiated in the name of a non-existing entity is justified in law?
ITAT states that, even after the learned DRP taking into account the fact of merger and passing order by giving directions to the learned AO in the name of the merged entity i.e. Atos India Pvt. Ltd, the learned AO continued to frame the final assessment order in the name of erstwhile amalgamating company. Hence, it could be safely concluded that the learned AO had passed draft assessment order as well as the final assessment order in the name of non-existent entity despite having due intimation of the fact of merger duly approved by the Hon’ble Bombay High Court vide order dated 21/12/2012. The law is now very well settled that assessment framed on an non-existent entity deserves to be declared as void ab initio by the recent decision of the Hon’ble Supreme Court in the case of PCIT vs. Maruthi Suzuki India Ltd., reported in 416 ITR 613 wherein it was held that where during pendency of assessment proceedings, assessee company was amalgamated with another company and thereby lost its existence, the assessment order passed subsequently in the name of said non-existent entity, would be without jurisdiction and was to be set aside. Respectfully following the same, we hold that the assessment order framed by the learned AO in the instant case deserves to be quashed as the same is without jurisdiction, being framed on a non-existent entity. Accordingly, the additional ground raised by the assessee is allowed. Since, the entire assessment is quashed on a legal issue, the adjudication of various other grounds of merits becomes infructuous.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by Revenue is directed against the final order passed by the Assessing Officer dated 31.01.2017 under Section 143(3) r.w.s. 144C(13) of Income Tax Act, 1961 (hereinafter “the Act”) and it relates to A.Y. 2012-13.
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