Sterlite Technologies Limited Vs DCIT (Bombay High Court)
The petitions challenged assessment orders, demand notices, and penalty notices issued for Assessment Years 2013–14 and 2014–15 on the ground that they were passed in the name of a non-existing company. As both petitions involved common questions of fact and law, the Bombay High Court referred to the facts in one writ petition.
A notice under Section 148 of the Income Tax Act, 1961 dated 30 March 2021 was issued for Assessment Year 2013–14 to Elitecore Technologies Private Limited (ETPL) on the basis that the Assessing Officer had reason to believe that income chargeable to tax had escaped assessment under Section 147 of the Act.
In response, the petitioner informed the Assessing Officer through a communication dated 28 April 2021 that ETPL had ceased to exist due to its amalgamation with the petitioner company with effect from 29 September 2015. The petitioner stated that since the notice was issued in the name of a non-existing entity, it was void ab initio and the reassessment proceedings should be withdrawn.
Despite this objection, a show cause notice dated 22 March 2022 was issued to ETPL requiring it to explain why the proposed variation should not be made. The Assessing Officer attempted to justify the reassessment proceedings on the ground that they related to a transaction prior to 29 September 2015, which was the appointed date of amalgamation. Subsequently, an assessment order dated 30 March 2022 was passed under Section 147 read with Section 144B of the Act against ETPL, followed by a penalty notice under Section 274 read with Section 271(1)(c) of the Act.
