Harman Connected Services Corporation India Private Limited Vs DCIT (Karnataka High Court)
Karnataka High Court held that notice to a non-existing entity would be one without jurisdiction. Accordingly, notice issued u/s. 148A(b) of the Income Tax Act to the merged entity is liable to be set aside.
Facts- The petitioner – Harman Connected Services Corporation India Pvt. Ltd., has called in question the correctness of the order u/s. 148A(d) of the Income Tax Act, 1961 as well as the notice u/s. 148 of the Act and the notice u/s. 148A(b) of the Act.
It is submitted that the petitioner was an entity that was formed after the scheme of amalgamation which was approved by the orders of the High Court of Bombay, whereby the merger of Symphony Services Pune Private Limited into M/s. Harman Connected Services Corporation India Ltd., was ordered with effect from 01.04.2008.
It is submitted that inspite of communication of the merger, notice u/s. 148A(b) of the Act is issued to M/s. Symphony Services Pune Pvt. Ltd. on 31.01.2024.
Conclusion- The Apex Court in the case of Principal Commissioner of Income Tax, New Delhi v. Maruti Suzuki India Ltd., had clarified that the notice to a non- existing entity would be one without jurisdiction. Clearly once the authorities record the change of entity by a merger, the notice to Symphony Services Pune Ltd., on 31.01.2024 could not have been issued.
