Case Law Details
Hinal Estates Private Limited Vs Union of India and anr. (Bombay High Court)
In plain terms, the entire assessment concerns the amalgamating company. When the notice of reopening of assessment was issued, the said company had already merged with the petitioner company. The petitioner company neither had been served with the notice of reopening of assessment, nor had any occasion to participate in such re-assessment proceedings. Obviously, therefore, the order of assessment that came to be passed pursuant to such notice, was not against the petitioner. That being the position, the Department cannot seek recovery of the taxes arising out of the order of assessment. Learned counsel for the Department however submitted that as per the scheme of amalgamation the petitioner had undertaken to discharge the liability of the amalgamating company. Had the order of assessment been passed prior to amalgamation, this clause under the scheme of amalgamation could have been activated. This is not the position in the present case. Under the circumstances, impugned notice of recovery dated 12th March, 2018 is set aside. Consequently, attachment of the petitioner’s bank accounts is lifted. Petition is disposed of accordingly.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. Petitioner has challenged a recovery notice dated 12th March, 2018 as at annexure-A to the petition issued by the Income Tax Officer, Mumbai-Respondent No.2 herein.
2. Briefly stated, the facts are that:-
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