Case Law Details
Solvent Real Estate Pvt. Ltd. Vs ITO (ITAT Kolkata)
Introduction: In the case of Solvent Real Estate Pvt. Ltd. vs ITO before the Income Tax Appellate Tribunal (ITAT) Kolkata, the validity of an assessment order under section 143(3) of the Income Tax Act, 1961, came under scrutiny. The tribunal ruled that framing an assessment in the name of a non-existing entity renders the order invalid and void ab-initio.
Detailed Analysis:
1. Background: The cross-appeals were filed by both the assessee and the revenue against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2011-12. The key contention raised by the assessee was the invalidity of the assessment order framed under section 143(3) of the Income Tax Act due to the company’s merger.
2. Assessee’s Argument: The assessee challenged the assessment order on the grounds that the company had ceased to exist post-merger with Elite Realcon Pvt. Ltd. The counsel argued that the order passed in the name of the non-existent entity is void ab-initio, citing legal precedents and emphasizing the intimation provided to the Assessing Officer regarding the merger.
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