Case Law Details
DCIT Vs IDBI Bank Ltd (ITAT Mumbai)
In a recent case before the Income Tax Appellate Tribunal (ITAT) in Mumbai, the validity of a rectification order under Section 154 of the Income-tax Act, 1961, came under scrutiny. The case, titled “DCIT Vs IDBI Bank Ltd,” involved a dispute regarding the rectification order passed in the name of a non-existent entity, United Western Bank Ltd., despite the assessing officer’s knowledge of its merger with IDBI Bank Ltd. Let’s delve into the detailed analysis of the case and the tribunal’s ruling.
The crux of the matter revolved around the rectification order issued by the Deputy Commissioner of Income Tax against the appellate order passed by the National Faceless Appeal Centre. Despite being aware of the merger between United Western Bank Ltd. and IDBI Bank Ltd., the assessing officer proceeded with the rectification in the former’s name. This discrepancy led to the appeal by the Deputy Commissioner, challenging the decision of the Commissioner of Income Tax (Appeals) (CIT-A).
The appellant contended that the rectification order was invalid due to its issuance in the name of a non-existent entity, United Western Bank Ltd. Various correspondences and notifications regarding the merger had been duly submitted, indicating the assessing officer’s knowledge of the amalgamation. The appellant relied on legal precedents, including decisions by the Hon’ble Supreme Court and the Bombay High Court, to support their argument.
The CIT (A), upon careful consideration of the facts and legal submissions, upheld the appellant’s contention, quashing the rectification order. The CIT (A) concluded that the assessing officer was fully aware of the merger between United Western Bank Ltd. and IDBI Bank Ltd., and hence, the rectification order issued in the former’s name was without jurisdiction.
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