Case Law Details
Anokhi Realty Private Limited Vs ITO (Gujarat High Court)
Introduction: Dive into the recent Gujarat High Court ruling in the case of Anokhi Realty Private Limited vs ITO, which pertains to the quashing of an income tax reassessment notice against a non-existent entity due to amalgamation. This analysis dissects the court’s verdict and its implications on tax assessment procedures.
Background: The case revolves around the cessation of existence of Satyasarthi Estate Organisers Private Limited, which merged with Anokhi Realty Private Limited through a scheme of amalgamation. The former company communicated the merger to the jurisdictional Assessing Officer, but still received notices for reassessment under Section 148 of the Income Tax Act for the years 2014-15 to 2017-18.
Key Points: The petitioner’s advocate, Ms. Nupur Shah, argues that notices issued to a non-existent entity are illegal and impermissible. She highlights that the amalgamation was effective from 01.04.2019, making Satyasarthi Estate Organisers Private Limited non-existent at the time of the notices.
Ms. Shah relies on various judicial decisions, including Gauriputra Estate Holders Pvt. Ltd. v. Union of India, Principal Commissioner of Income Tax, New Delhi, and Adani Wilmar Ltd. v. Assistant Commissioner of Income-tax, to support her contention that assessment on a non-existent company is prohibited.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
