Erstwhile United Bank of India Vs DCIT (ITAT Delhi)
ITAT Delhi held that assessment passed on a non-existing entity [i.e. United Bank of India] not sustainable since the same is amalgamated with Punjab National Bank and accordingly, Union Bank of India has lost its existence.
Facts- The assessee filed its original return of income on 30.10.2018 under the name of United Bank of India declaring a loss of Rs 1772,41,08,274/-. The assessee filed a revised return on 29.03.2019 declaring a loss of 5031,46,85,463/-. The return of the assessee was selected for complete scrutiny assessment through CASS and accordingly statutory notices were issued and served upon the assessee. Ultimately, AO passed order u/s 143(3) r.w 144B on 26.08.2021 in the name of United bank of India assessing the loss at Rs 4993,18,18,621/-. The entire quarrel of the assessee is that the assessment has been made on an entity which was not in existence on 26.08.2021 at all.
Conclusion- Held that the assessment in the instant case has been framed on a non-existing entity (UBI). The Revenue was time and again informed of the amalgamation which was acknowledged in assessment proceedings for AY 2012-13 but completely ignored in assessment proceedings for AY 2018-19. As held by the Supreme Court in Maruti Suzuki that an assessment made on an entity that has ceased to exist, “is substantive illegality and not a procedural violation of nature adverted to in section 292B of the Income Tax Act”. Therefore, we are of the considered view that the assessment order for AY 2018-19 on United Bank of India is void ab initio and has to be quashed. We order accordingly and set aside the findings of the CIT(A) by quashing the assessment order. Since the assessment order has been held to be a nullity, we do not find it necessary to dwell into the merits of the case.
