Case Law Details
Crisil Ltd Vs ACIT (ITAT Mumbai)
Introduction: In the case of Crisil Ltd vs ACIT (ITAT Mumbai), a critical legal issue surrounding the assessment order against a non-existing entity was addressed. The Income-tax Appellate Tribunal (ITAT) held that the assessment order against Pipal Research Analytics and Information Services India Pvt. Ltd., which had merged with CRISIL Limited, was invalid.
Analysis: The case centers on the assessment order passed on 22nd May 2017, involving an adjustment of ₹2,70,20,486/- on account of the Arm’s Length Price of international transactions. This was challenged on the grounds that the assessment order was issued against a non-existent entity after Pipal Research Analytics merged with CRISIL Limited.
Despite CRISIL Limited informing the Assessing Officer about the merger and requesting the cancellation of Pipal’s Permanent Account Number (PAN), the draft assessment order was passed in the name of the non-existent Pipal Research Analytics.
The ITAT examined the entire chronology of the case and the conduct of the assessee, along with the supporting legal precedents. The decision of the Hon’ble Supreme Court in the case of CIT vs. Maruti Suzuki India Ltd. was prominently cited, where it was held that an assessment order against a non-existing entity post amalgamation is invalid.
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