ACIT Vs Candor Renewable Energy Pvt. Ltd (ITAT Mumbai)
The ITAT Mumbai ruled that assessment proceedings and orders issued in the name of a company that had been dissolved through amalgamation are void, affirming the principles established in the Supreme Court’s Maruti Suzuki case and distinguishing the facts from the Mahagun Realtors case. The court found that despite being informed, the Assessing Officer proceeded against a non-existent entity, rendering the entire process invalid from the start.
Summary of the ITAT Mumbai Ruling in ACIT v. Candor Renewable Energy
The Income Tax Appellate Tribunal (ITAT), Mumbai, in the case of Assistant Commissioner of Income Tax (ACIT) v. Candor Renewable Energy Pvt. Ltd., upheld the invalidity of assessment proceedings conducted against a company that no longer existed due to amalgamation. The central issue was whether an assessment initiated and completed in the name of a dissolved company, M/s Bhadrawati Ispat & Energy Ltd. (the amalgamating company), was legally valid after it had merged with M/s Reliable Record Keepers Pvt. Ltd. (the amalgamated company), now known as Candor Renewable Energy Pvt. Ltd. The amalgamation was approved by the Hon’ble Bombay High Court on August 12, 2016, with an effective date of April 1, 2015.
