CLSA India Private Limited Vs DCIT (Bombay High Court)
Notice issued to non-existent company after its amalgamation is not valid under Income Tax
The Hon’ble Bombay High Court in CLSA India Private Limited v. the Deputy Commissioner of Income-Tax [Writ Petition No. 2462 of 2022 dated February 10, 2023] has set aside the notice under Section 148 of the Income Tax Act, 1961 (“the IT Act”), the order of assessment and the consequential demand and penalty notice, on the ground that the same was issued in the name of a non-existent company, on account of its amalgamation.
Facts:
This petition has been filed by the CLSA India Private Limited (“the Petitioner”) challenging the notice dated March 31, 2021 (“the Impugned Notice”) issued under Section 148 of the IT Act and also the order of assessment dated March 31, 2022 (“the Impugned Order”) passed under Section 147 read with Section 144 and Section 144B of the IT Act, for the assessment year 2017-18, on the ground that the same was issued in the name of a non-existent company i.e. Laysin BPO Pvt. Ltd.
In reply to the Impugned Notice, the Petitioner informed the Revenue Department (“the Respondent”) about the non-existence of the Laysin BPO Pvt. Ltd on account of its amalgamation with the Petitioner vide order dated April 16, 2016 and therefore, sought to drop the proceedings against the non-existent company. Despite that, the Impugned Order was issued in the name of the Petitioner while at the same time, mentioning the name of the assessee as Laysin BPO Pvt. Ltd.
Issue:
Whether the Impugned Notice and the Impugned Order issued to a non-existent company is maintainable?
Held:
The Hon’ble Bombay High Court in Writ Petition No. 2462 of 2022 held as under:
