Canara Bank (Erstwhile Syndicate Bank) Vs DCIT (ITAT Bangalore)
Assessment on Amalgamated Bank’s Predecessor Held Void; ITAT Quashes Order Passed in Name of Non-Existent Syndicate Bank
The Bangalore ITAT quashed an assessment framed in the name of Syndicate Bank, holding that the assessment order was passed against a non-existent entity after its amalgamation with Canara Bank. The Tribunal reiterated that an assessment made in the name of a dissolved or amalgamated entity is a jurisdictional defect that renders the order void ab initio.
In this case, Syndicate Bank stood amalgamated with Canara Bank with effect from 01.04.2020 pursuant to a Government notification. During the course of the assessment proceedings, the assessee specifically informed the Assessing Officer about the amalgamation through letters dated 05.02.2021 and 22.02.2021. Despite being aware of the merger, the Assessing Officer passed the assessment order on 20.04.2021 in the name of Syndicate Bank.
The Revenue argued that the assessment proceedings had commenced before the amalgamation, that the assessee had participated in the proceedings, and that the error was curable under section 292B. The Tribunal rejected these contentions, observing that once the amalgamating entity ceases to exist, an assessment cannot be framed in its name. Participation by the successor entity does not validate an order passed against a non-existent person.
Relying on the Supreme Court judgment in PCIT v. Maruti Suzuki India Ltd., as well as the decisions in Spice Entertainment, Logica Pvt. Ltd., Reliance Industries Ltd., and Inox Wind Energy Ltd., the Tribunal held that such a defect is not a procedural irregularity and cannot be cured by invoking section 292B. Where the Assessing Officer has knowledge of the amalgamation and still passes the order in the name of the erstwhile entity, the assessment is a nullity in law.
Accordingly, the Tribunal quashed the entire assessment as void ab initio. Since the assessee succeeded on the legal issue, the Tribunal did not examine the various additions and disallowances made on merits.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal is filed by the assessee against the order of learned Commissioner of Income Tax – Appeals (NFAC, Delhi) [in short “CIT(A)”] vide DIN & order No. ITBA/NFAC/S/250/2025-26/1078450113(1) dated 14.07.2025 for the Assessment Year 2018-19 arising out of the order passed under section 143(3) of the Income tax Act, 1961, dated 20.04.2021.
