Reliance Industries Limited Vs P. L. Roongta – CIT (Bombay High Court)
The Bombay High Court disposed of a group of appeals relating to assessment years 1993–94 to 1995–96 along with a writ petition through a common order, as the central issue involved a common jurisdictional question. The appeals were filed by the assessee, while the revenue had filed cross-appeals for assessment year 1994–95. The matter arose from assessment orders passed in the names of companies that had ceased to exist due to amalgamation with another company.
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The jurisdictional question framed by the Court was whether an assessment order passed under Section 143(3) of the Income-tax Act in the name of a non-existent entity is void ab initio. The Court permitted the assessee to raise this question during final hearing, even though it had not been raised earlier before the assessing authority or appellate forums, because the issue went to the root of jurisdiction.
The amalgamating companies, Reliance Polyethylene Limited (RPEL) and Reliance Polypropylene Limited (RPPL), had filed returns for the relevant assessment years. Subsequently, by an order dated 11 January 1995, the High Court approved their merger with Reliance Industries Limited (RIL) with effect from 1 January 1995. Despite this merger, the Assessing Officer passed assessment orders under Section 143(3) in the names of RPEL and RPPL.
