Man Diesel and Turbo India Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that assessment order passed against non-existent entity is an invalid assessment order and hence entire assessment framed is liable to be quashed. Accordingly, appeal of assessee allowed.
Facts- The assessee Man Turbo India Pvt. Ltd. [MTIPL] was engaged in the business of repairs and refurbishment of turbo machinery and related auxiliary parts and activities relating to erection and commissioning of the same. MTIPL merged into MAN INDIA by way of amalgamation w.e.f. 1-1-2013 pursuant to Hon’ble Bombay High Court order dated 28.3.2014 approving the scheme of amalgamation.
MTIPL originally filed return of income for the 12 month period ending 31-03-2013, on 29-11-2013, declaring an income of Rs.16.28 crores. Subsequently, the return was revised on 31-03-2015, on approval of scheme of amalgamation vide court order dated 28-03-14, and the income declared for nine months upto 31-12-2012 as the amalgamation was effective from 01-01-2013, of Rs.11.04 crores. The same was scrutinized in terms of provisions of section 143(3) of the Act and various additions made to the income of the assessee.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Apex Court in the case of Pr. CIT Vs. Maruti Suzuki India Ltd. has held the assessment order framed on a non-existing entity to be invalid. Thus, held that the assessment order passed in the present case on a non-existent entity is an invalid assessment order, and the entire assessment framed, therefore, is directed to be quashed.
