Issue before Court:
Whether assessment framed in the name of assessee who had amalgamated in other entity is liable to be void for the relevant period for which assessment was made.
Brief facts:
- During a search & seizure operation AO found some seized material related to assessee and accordingly he issued notice to the assessee. By that assessee had been amalgamated with some other entity.
- But assessee on the basis of seized material made various additions in the name of assessee.
- On appeal CIT (A) set aside the assessment order on account of various judicial pronouncement and held that AO was in knowledge of amalgamation of assessee into another entity and hence assessment framed were unsustainable.
Contention of the revenue:
- Besides the facts of knowledge of amalgamation AO noticed that assessee participated in the assessment proceedings and under the purview of section 292 B assessee was precluded from any nullity of assessment framed.
Contention of the assessee:
- The income tax authorities were under a duty, upon receipt of information, to initiate complete proceedings against the transferee company which they had not done.
- Issuance of notice u/s 153C against a non-existent company is bad in law and invoking provision of section 292 B is not applicable in case that company.
Held by the Court:
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