Order passed on non-existing entity is liable to be quashed

DCIT Vs BJN Holdings Ltd (ITAT Delhi)

ITAT Delhi held that assessment order passed on non-existing entity (dissolved company) is liable to be quashed as the Assessing Officer has the knowledge of the dissolution of the company.

Facts- A search & seizure operation u/s 132 of the Income Tax Act was carried out on 16.09. 2011. Notice u/s 143C was issued on 03 .07.2018 and notice u/s. 143(2) was issued on 14.09.2018. Notice u/s. 142(1) was issued on 04.07.2018, 16.10.2018.

The entity BJN Holdings Ltd. was dissolved on 09.08.2010 u/s. 273A of the Companies Act, 1931. The entire assets and liabilities were taken over by two successor entities namely, BJN Holdings (I) Ltd and BJN Holdings (BD) Ltd.

The ld. CIT(A) quashed the Assessment Orders holding that the assessment could not be conducted on a non-existing entity.

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