Snowhill Agencies P. Ltd. Vs PCIT (ITAT Ahmedabad)
The assessee appealed against the order of the Principal Commissioner of Income Tax dated 12.03.2019 passed under Section 263 of the Income Tax Act, 1961. The assessee contended that the revision proceedings were initiated and concluded against Snowhill Agencies Pvt. Ltd. (SAPL), which had ceased to exist pursuant to schemes of amalgamation sanctioned by the High Court. SAPL had merged with Jainco with effect from 01.04.2013 under a scheme sanctioned on 11.06.2015, and Jainco subsequently merged with Gallops under a scheme sanctioned on 20.01.2016. The assessee argued that the department had been informed of these amalgamations and that the Assessing Officer had acknowledged the merger while passing the assessment order under Section 143(3) read with Section 263. Nevertheless, the Principal Commissioner issued notices under Section 263 in the name of SAPL and ultimately passed the impugned revisional order against the same entity.
The Revenue argued that the decisions relating to assessments made on non-existent entities were distinguishable because the present matter involved revision proceedings under Section 263, which, according to it, were merely a continuation of the original assessment proceedings. It was contended that the original assessment had been completed before the amalgamation order was sanctioned and that subsequent revisional proceedings could continue against the same entity.
