PCIT Vs GPT Sons Pvt Ltd (Calcutta High Court)
Calcutta High Court dismissed an appeal by the revenue in the case of PCIT Vs. GPT Sons Pvt. Ltd., affirming the decision of the Income Tax Appellate Tribunal (ITAT) that notices issued to a non-existent entity (amalgamating company) were invalid. The case revolved around a scrutiny notice issued under Section 148 of the Income Tax Act, 1961, in the name of GPT Sons Pvt. Ltd., despite its merger with GPT Ventures Pvt. Ltd. The revenue argued that the defect was curable under Section 292B and cited non-disclosure of the amalgamation by the assessee. However, the ITAT found this claim factually incorrect, noting the assessing officer was aware of the amalgamation before issuing the notice.
The court emphasized that issuing a notice to a non-existent entity constitutes a jurisdictional defect, which Section 292B cannot cure. Citing precedents, including the Supreme Court’s ruling in Amarchand N. Shroff and the Calcutta High Court’s judgment in I.K. Agencies Pvt. Ltd., the court held that such a defect undermines the validity of the proceedings. The revenue’s reliance on PCIT Vs. Mahagun Realtors Pvt. Ltd. was dismissed, as the facts of suppression in that case were not analogous. The court concluded that the revenue’s actions were procedurally flawed, and the substantial questions of law were answered against it.
