JCIT (OSD) Vs IGT Solution Private Ltd. (ITAT Delhi)
Delhi Bench of ITAT upheld the order of CIT(A), NFAC, Delhi, & dismissed the Revenue’s appeal in the case of M/s IGT Solutions Pvt. Ltd. where reassessment proceedings were initiated in the name of a non-existent entity. Tribunal observed that the original company, I.G.T. Solutions Pvt. Ltd., had been amalgamated with InterGlobe Technologies Pvt. Ltd. with effect from 1 April 2017 as per the NCLT order dated 12.04.2018. The resultant company was later renamed as IGT Solutions Pvt. Ltd. on 19.02.2019. The amalgamation & change of name were duly intimated to the Assessing Officer on 26.08.2019.
Despite this intimation, the reassessment notice & assessment order were issued in the name of the erstwhile amalgamating company which had ceased to exist.
CIT(A) annulled the assessment relying on the Supreme Court ruling in PCIT v. Maruti Suzuki India Ltd. [2019] 107 taxmann.com 375 (SC), which held that proceedings initiated against a non-existent entity are void ab initio.
Revenue contended before ITAT that the CIT(A) erred by not considering the later Supreme Court decision in PCIT (Central) v. Mahagun Realtors (P) Ltd. [2022 SCC OnLine SC 407], where distinction was made based on factual circumstances.
