Assessment order Passed without allowing Assessee to File Objection is Invalid

Jindal Exports And Imports Private Limited Vs DCIT (Delhi High Court)

Impugned assessment orders are liable to be set aside as the Petitioner was not given adequate opportunity to file response to the said show cause notice-cum-draft assessment orders. Consequently, as there has been a violation of principle of natural justice, the impugned assessment orders as well as demand and penalty notices dated 31^st March, 2022 are set aside and the matter is remanded back to the Assessing Officer for fresh adjudication.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. Present writ petitions have been filed challenging the reassessment notices dated 27^th March, 2021 and 28^th March, 2021 issued under Section 148 of the Income Tax Act, 1961 [‘the Act’] for the assessment years 2014­15 and 2015-16 as well as the assessment orders dated 30^th March, 2022 passed under Section 147 read with Section 143(3) of the Act.

2. Learned counsel for the Petitioner states that the impugned notices as well as the orders are void ab initio as they have been issued in the name of ‘Jindal Menthol & Investment Pvt. Ltd.’, a non-existing entity as it had merged with the Petitioner company with effect from 1^st April, 2013 vide order dated 6^th August, 2014 passed by this court under Section 394 of the Companies Act, 1956. He relies on the decision of the Supreme Court in Commissioner of Income Tax v. Maruti Suzuki India Limited, (2019) 416 ITR 613 (SC) wherein it has been held that the issuance of a notice to the non-existing company is a substantive illegality and not a procedural violation.

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