Order passed against a non-existing company is liable to be quashed

Rathi Ceramics Pvt. Ltd. Vs ITO (ITAT Delhi)

ITAT Delhi held that the assessment order passed against a non-existing company is void ab initio and hence liable to be quashed.

Facts- Assessee mainly contended that assessment order is void ab initio as the same is passed against non-existing company. On the other hand, revenue contended that Hon’ble Supreme Court has upheld the validity of Assessment Order passed in the name of amalgamating company.

Conclusion- The Bench is of considered opinion that Ld. AO fallen in error in not taking cognizance of the fact of merger of the assessee company and that it had lost legal existence for the purpose of the Act, still the assessment order was passed against non-existing entity. Such order is void ab initio. Additional grounds are allowed. Consequently, the appeal of assessee is allowed. Impugned assessment, order along with consequential proceedings, are declared to be Non est against the appellant.

FULL TEXT OF THE ORDER OF ITAT DELHI

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