Oasys Green Tech Private Limited Vs ITO (Madras High Court)
Summary: The Madras High Court dismissed the writ appeals filed by Oasys Green Tech Private Limited against the common order passed in W.P.Nos.1759 and 21858 of 2018. The writ petitions had sought to quash the order dated 28.06.2018 levying penalty under Section 271(1)(c) of the Income Tax Act, 1961 and the assessment order dated 30.12.2017 passed under Sections 144 and 147 of the Act.
The assessee’s principal contention was that the notice under Section 148 had been issued to M/s. OAS Digital Infrastructures Private Limited (OAS), which had already amalgamated with Oasys Green Tech Private Limited and therefore did not exist when the notice was issued and when the consequential order was passed. The assessee relied upon several decisions concerning proceedings against non-existent entities, including Principal Commissioner of Income Tax, New Delhi vs. Maruti Suzuki India Limited, Spice Entertainment Ltd. vs. Commissioner of Service Tax, M/s. Rustagi Engineering Udyog Pvt. Ltd. vs. Assistant Commissioner of Income Tax, BDR Builders & Developers Pvt. Ltd. vs. Assistant Commissioner of Income Tax and Alamelu Veerappan vs. The Income Tax Officer, Non Corporate Ward 2(2).
The Revenue resisted the challenge on the ground that the Assessing Officer was not aware of the amalgamation. It pointed out that the return of income for assessment year 2014-15 had been filed on 07.03.2016 in the name of OAS by the appellant. The Revenue further stated that an income-tax refund issued in favour of OAS had been received and encashed by the appellant. On this basis, the Revenue contended that the appellant could not subsequently contend that OAS was non-existent and that proceedings initiated in its name were invalid.
