DCIT Vs Raghuleela Estates Pvt. Ltd (ITAT Mumbai)
Notice u/s 148 issued in name of non-existent amalgamated company was Null and Void
Conclusion: Since the notice was issued under Section 148 in the name of a non-existing entity, despite the department having been intimated about the amalgamation much earlier, the impugned notice under Section 148 was null and void. Consequently, the reassessment order passed based on this invalid notice was quashed.
Held: In the instant case, first notices u/s.148 was issued in the name of “Wadhwa Associates and Realtors Pvt. and approval u/s.151 was also sought on the same date in the name of erstwhile company. Later on show-cause notice u/s. 148A(b) also issued in the name of Wadhwa Associates and Realtors Pvt. Ltd., a non-existing entity at that time. Even when assessee raised this objection before AO, order u/s.148A(d) and final notice u/s.148 dated 30/07/2022 had again been issued in the name of Wadhwa Associates and Realtors Pvt. Ltd., Once AO himself had noted in his order u/s.148A(d) about the factum of amalgamation in the order of the NCLT that the erstwhile company had been amalgamated with M/s. Raghuleela Estate Pvt. Ltd., then also he issued the notice u/s.148 in the name of the non-existing entity. As noted, NCLT had approved the scheme of amalgamation vide its order dated 11/02/2021 appointed date of the scheme was 01/10/2019. It had been brought on record that this fact was duly disclosed by assessee to the department by way of following letters. It implied the department had knowledge or constructive knowledge of the change in legal identity. A notice issued to a non-existent entity was a nullity, rendering all subsequent reassessment proceedings and the final reassessment order void ab initio.
