Case Law Details
Delta Electronics India Pvt. Ltd. Vs PCIT (Uttarakhand High Court)
Uttarakhand High Court held that issuance of notice to the Transferor Company (i.e. non-existent entity) and order passed u/s 148A(d) of the Income Tax Act against the non-existent entity is bad in law and liable to be quashed.
Facts- The challenge in this petition is made to notice u/s. 148 of the Income Tax Act, 1961 as well as order under Section 148 A(d) of the Act for reassessment of Delta Power Solutions India Pvt. Ltd., for the assessment year 2019-20.
It is the case of the petitioner that the revenue issued notice dated 03.02.2020, u/s. 148A of the Act against the Transferor company specifying, therein, that the PAN of the Transferor company was active. This notice was replied by the petitioner on 10.02.2020 bringing it to the notice of the revenue the factum of amalgamation. As also indicating that with effect from the appointed dated, i.e. 01.04.2018, all the transactions entered and appeared on the PAN of Transferor company has been duly accounted by the petitioner’s company being amalgamated company in accordance with the generally accepted accounting policy and other applicable laws.
Conclusion- Held that mere activation of PAN number may not give a right to the revenue to issue notice to a non-existent entity. Admittedly, in the instant case, the notice was given to the Transferor company, which is a non-existent entity, after the appointed date, i.e. 01.04.2018. Admittedly, the order under Section 148 A (d) of the Income Tax Act has been passed by the revenue against a non-existent entity. Therefore, the order is bad in the eyes of law. Accordingly the petitioner deserves to be allowed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
