Siemens Limited Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that the assessment order passed in the name of non-existing entity will not survive. Accordingly, the assessment order is liable to be quashed and set aside.
Facts- The assessee has preferred the present appeal challenging the validity of the assessment order on the ground that the assessment orders have been passed by the Assessing Officer on a non-existing entity and hence they are liable to be quashed.
Notably, the assessee herein was initially known as M/s. Siemens Health Care Diagnostics Limited (SHDL). It amalgamated with “Siemens Limited” by virtue of order dated 28.01.2011 passed by Hon’ble Bombay High Court and the order dated 1st March 2011 passed by Hon’ble Gujarat High Court pursuant to amalgamation petition filed by both the parties. The “appointed date” for amalgamation was 1st October 2009 and upon giving effect to the order of High Courts, the assessee company stood dissolved from the appointed date and merged with M/s. Siemens Limited.
Conclusion-
Hon’ble Supreme Court in the case of Maruti Suzuki Ltd has held that the assessment order passed in the name of non-existing entity will not survive.
Held that since the assessment orders for the assessment years 2008-09 to 2010-11 have been passed in the name of non-existing entity, all of them are liable to be quashed. Since the assessment order passed in AY 2008-09 has been quashed, the consequential order passed in that year in order to give effect to the decision of the Tribunal in the first round of proceedings will also not survive, since the original assessment order itself has been quashed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
All the four appeals filed by the assessee relate to A.Y. 2008-09, 200910 & 2010-11 mentioned in the caption. All these appeals were heard together and are being disposed of by this common order.
2. Even though the assessee has raised many grounds, it has raised a legal contention in all these appeals challenging the validity of the assessment order on the ground that the assessment orders have been passed by the Assessing Officer on a non-existing entity and hence they are liable to be quashed. Since the above said legal contention goes to the root of the matter, we heard the parties on this legal issue.
3. The Learned AR submitted that the assessee herein was initially known as M/s. Siemens Health Care Diagnostics Limited (SHDL). It amalgamated with “Siemens Limited” by virtue of order dated 28.01.2011 passed by Hon’ble Bombay High Court and the order dated 1st March 2011 passed by Hon’ble Gujarat High Court pursuant to amalgamation petition filed by both the parties. The “appointed date” for amalgamation was 1st October 2009 and upon giving effect to the order of High Courts, the assessee company stood dissolved from the appointed date and merged with M/s. Siemens Limited.
4. The Learned AR further submitted that the assessee, vide its letter dated 29.4.2011 (filed with the Assessing Officer on 28.5.2011) intimated the fact of amalgamation of the assessee with M/s. Siemens Limited to the assessing officer and also enclosed copies of the orders passed by Hon’ble Bombay High Court and Hon’ble Gujarat High Court. However, the Assessing Officer, despite getting intimation about the merger, has passed the order in the name of the non-existing entity, viz., M/s. SHDL”. The details of the date of intimation and the date of passing of assessment order are tabulated below :-
