Assessment order passed in the name of non-existent entity is invalid

Motorola Solutions India Pvt. Ltd Vs ACIT (ITAT Delhi)

ITAT Delhi held that assessment order passed in the name of non-existent entity is equivalent to passing an order in the name of dead person, hence, is invalid.

Facts- The assessee submitted that by virtue of an order dated 30th March 2006 passed by the Hon’ble High Court of Punjab & Haryana, M/s. Motorola India Pvt. Ltd., as the then it was, merged with M/s. Motorola Solutions India Pvt Ltd., the present assessee. The amalgamation was made effective from 01.04.2005 and the fact of amalgamation of M/s. Motorola India Electronics Pvt. Ltd. with M/s. Motorola Solutions India Pvt. Ltd. was duly intimated to AO.

It is further submitted that in spite of such intimation to AO that M/s. Motorola India Electronics Pvt Ltd. is no more in existence, still AO proceeded to pass the assessment order in the name of a non-existent entity and hence the assessment order having been passed in the name of non-existent entity is invalid.

Conclusion- Hon’ble Supreme Court in the case of PCIT vs. Maruti Suzuki India Ltd. has held that assessment order passed in the name of a non-existent entity is equivalent to passing an order in the name of dead person, hence, is invalid.

Please become a Premium member. If you are already a Premium member, login here to access the full content.