Case Law Details
Savera Marketing Pvt. Ltd. Vs ITO (ITAT Delhi)
The company Savera Marketing Pvt. Ltd. ceased to exist w.e.f. 01.04.2008 as it was amalgamated with M/s. Shark Packaging (India) Pvt. Ltd. under a scheme of amalgamation approved by the Hon’ble Delhi High Court vide order dated 21.01.2011. It is forthcoming from the records that the amalgamated company namely, M/s. Shark Packaging (India) Pvt. Ltd. vide letter dated 18.06.2011 to the Ld. AO intimated him that M/s. Savera Marketing Pvt. Ltd. ( the assessee) has merged with M/s. Shark Packaging (India) Pvt. Ltd. pursuant to the order dated 21.01.2011 of the Hon’ble Delhi High Court and requested him to cancel the PAN allotted to the assessee, M/s. Savera Marketing Pvt. Ltd.
Despite this information the Ld. AO proceeded to issue notice under section 148 dated 25.03.2013 in the name of non existing company and continued the reassessment proceedings by issue of statutory notices under section 143(2) and 142(1) also in the name of non-existing company culminating in passing of reassessment order under section 147 read with section 143(3) of the Act on 10.03.2014.
Relying on the judicial precedents as below, we have no hesitation in holding that Ld. AO was not within his jurisdiction to frame the reassessment in the name of non-existing entity and such reassessment order dated 10.03.2014 is nullity and not sustainable in the eye of law–
(i) Spice Enfotainment Ltd. vs. CIT [247 ITR 500 (Delhi)] approved by the Supreme Court in CIT vs. Spice Enfotainment Ltd. (Civil Appeal No. 285 – 286 of 2014 decided on 02.11.2017) wherein it is held that assessment framed in the name of non existing entity does not remain a procedural irregularity which could be cured by invoking the provisions of section 292B of the Act.
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