Case Law Details
Avaada Ventures Private Limited Vs DCIT (ITAT Mumbai)
Conclusion: Assessment Order passed under Section 153A read with Section 143(3) was invalid in the eyes of law as the same had been passed on non-existing entity despite AO having been put to notice by assessee during the course of assessment proceedings.
Held: Juicy International Pvt. Ltd. was an Indian private limited company engaged in manufacture and retail of food & juice products, investment in shares and real estate business. It filed the original return of income under Section 139(1) declaring income of INR 39,70,436/- which was taken up for scrutiny. The original scrutiny assessment proceedings resulted in passing of order, under Section 143(3) whereby income of Juicy International Pvt. Ltd. was assessed at INR 55,66,732/-. Thereafter, reassessment proceedings were initiated against under Section 147 which were abated on account of search and seizure action under Section 132 carried out in the case of Welpsun Group of the Company under which the premises of assessee were also covered on 30/06/2017. Notice was issued under Section 153A in the name of ‘Juicy International Pvt. Ltd. (now amalgamated with Avaada Power Pvt. Ltd.)’. Notice under Section 153A was issued almost four years after the effective date of merger. The contention of the Revenue was that no intimation of the merger was sent to AO before the issuance of the above notice. However, assessee had vide letter clearly communicated to AO that Juicy International Pvt. Ltd. merged with Avaada Power Pvt. Ltd. and was not in existence. It was held that CIT(A) had held the assessment order to be invalid after taking into consideration the judgment of the Hon’ble Supreme Court in the case of Mahagun Realtors Pvt. Ltd. and Pr. CIT Vs. Maruti Suzuki India Ltd.: 416 ITR 613 (SC) as well as the decision of the coordinate Bench of the Tribunal in the case of Candor Renewable Energy Pvt. Ltd. (erstwhile Bhadrawati Ispat & Energy Ltd. Vs. Assistant Commissioner of Income Tax, CC-3(3), Central Range-3, Mumbai: ITA No. 697 & 698/Mum/2022, dated 19/10/2022. CIT(A) was correct in holding that the Assessment Order passed under Section 153A read with Section 143(3) was invalid in the eyes of law as the same had been passed on non-existing entity despite AO having been put to notice by assessee during the course of assessment proceedings. Therefore, there was no infirmity in the order passed by the CIT(A).
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. This is a batch of 7 appeals pertaining to Assessment Years 2012- 13, 2013-14, 2014-15 and 2015-16 which were heard together as the same involved identical issues and are, therefore, being disposed off by way of a common order.
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