Case Law Details
Siemens Limited Vs DCIT (ITAT Mumbai)
The issue under consideration is whether the Assessment Order against non-existent entities will be considered as valid in law?
ITAT states that,neither the issuance of the notice u/s 143(2) to the amalgamating company i.e a non-existent entity be construed as a notice issued to the amalgamated company, nor the same be validated by bringing it within the realm of a procedural irregularity within the meaning of Sec. 292B of the Act. ITAT are of a strong conviction that non-issuance of a notice u/s 143(2) to the amalgamated company, which forms the very foundation for framing of a valid assessment would divest the A.O of his very jurisdiction to frame such assessment. In fact, ITAT would mince no words in concluding that the non-issuance of a notice u/s 143(2) to the amalgamated company viz. M/s Siemens Limited, PAN No. AAACS0764L, would therein render the impugned assessment framed by the A.O u/s 143(3) r.w.s 144C(13), dated 30.01.2017 as invalid and void ab initio. Accordingly, the impugned assessment framed by the A.O by issuance of any notice u/s 143(2) to the amalgamated company cannot be sustained, and is thus quashed for want of jurisdiction.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal filed by the assessee is directed against the order passed by the A.O u/s 143(3) r.w.s 144C(13) of the Income-tax Act, 1961 (for short ‘Act’), dated 30.01.2017. The assessee has assailed the impugned order on the following grounds of appeal before us:
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