Pr. CIT Vs Maruti Suzuki India Limited (Supreme Court of India)
Summary: The Supreme Court dismissed the Revenue’s appeal arising from the Delhi High Court judgment dated 9 January 2018 concerning Assessment Year 2012-13. The dispute arose after Suzuki Powertrain India Limited (SPIL), which had filed its return before amalgamation, was amalgamated with Maruti Suzuki India Limited (MSIL) under a scheme approved by the Delhi High Court with effect from 1 April 2012. The amalgamation was approved on 29 January 2013 and SPIL stood dissolved without winding up. MSIL informed the Assessing Officer of the amalgamation on 2 April 2013.
Despite the intimation, the jurisdictional notice under Section 143(2) of the Income-tax Act, 1961 was issued on 26 September 2013 in the name of SPIL. Subsequent proceedings continued using the name of SPIL, including the Transfer Pricing Officer’s order and the draft and final assessment orders. The final assessment order dated 31 October 2016 made an addition of Rs. 78.97 crores towards royalty after a transfer-pricing adjustment.
MSIL participated in the assessment proceedings and subsequently challenged the assessment before the Tribunal on the ground that the proceedings and final assessment order had been conducted and issued in the name of a non-existent entity. The Tribunal set aside the assessment as void ab initio. The Delhi High Court affirmed the Tribunal’s decision, following its earlier decision concerning AY 2011-12.
