Case Law Details
Intas Lifesciences Vs ACIT (ITAT Ahmedabad)
The issue under consideration is whether AO is correct in issuing notice u/s 143(2) in the name of erstwhile partnership firm which was a non-existent entity at that point of time?
ITAT states that coming to the legality of order framed by the AO under section 143(3) read with section 92CA(3) of the Act vide order dated 06-02-2017, in this regard we note that the AO on the first page of his order has mentioned the name of Intas Pharmaceuticals which was a partnership firm. Thus it is clear that the assessment order was framed in the name of non-existent entity (Intas Pharmaceuticals) as the Intas Pharmaceuticals was amalgamated with Intas Pharmaceutical Ltd w.e.f. 01-04-2014 by the order of the Hon’ble Gujarat High Court dated 28-09-2015 and subsequently intimated to the Department vide letter dated 30-10-2015. However, it is undisputed fact that at the time of issue of notice under section 143(2) of the Act, the firm i.e. Intas Pharmaceuticals was not amalgamated but the assessment order was framed after amalgamation in the name of Intas Pharmaceuticals which was not existing at the relevant point of time. ITAT further note that the Department was aware about the amalgamation of the firm before framing the assessment order as the assessee intimated to the department as well as Hon’ble High Court also called the comments from the Department on the proposed scheme of amalgamation. Thus we can say that the provision of section 292B of the Act will not be applicable to the assessee as it is not a curable defect/mistake. Hence assessment framed on erstwhile partnership firm which was a non-existent entity was void ab initio.
FULL TEXT OF THE ITAT JUDGEMENT
Both captioned appeals have been filed at the instance of the assessee against the common order of the Commissioner of Income Tax (Appeals)-5, Ahmedabad (CIT(A) in short) dated 25/03/2019 relevant to Assessment Years (AY) 2013-14 & 2014-15.
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