ACIT Vs Argentium International Pvt. Ltd. (ITAT Delhi Bench)
Old PAN Was Curable, but a New Addition Without the Old Reason Was Not: ₹2.95 Crore Addition u/s 68 Deleted
Background: The original company, AKA Impex India Pvt. Ltd., bearing PAN AABCA1148F, later changed its name to Argentium International Pvt. Ltd. It was subsequently amalgamated with Shakti Commodities Pvt. Ltd., bearing PAN AAFCS2998K, pursuant to an NCLT order dated 06.02.2018. The amalgamation was taken on record by the Registrar of Companies on 23.02.2018.
After amalgamation, Shakti Commodities—the surviving company—was itself renamed Argentium International Pvt. Ltd. Thus, both the dissolved amalgamating company & the surviving amalgamated company ultimately carried the same name, though their PANs were different.
The AO received information from the Investigation Wing, Kolkata suggesting that the assessee had obtained accommodation entries of ₹2.55 crore by way of sales & purchases. He believed that commission income of ₹5.10 lakh, calculated at 2% of the alleged accommodation entries, had escaped assessment.
Reasons were recorded on 27.03.2019, & notice u/s 148 was issued on 28.03.2019. The notices mentioned the name Argentium International Pvt. Ltd. but carried the old PAN AABCA1148F.
Original Reason Vanishes, New Addition Appears
The surviving amalgamated company filed a return in response to the notice & participated in the reassessment proceedings.
