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2007 (2) TMI 342 - AT - Income TaxSuccession to business otherwise than on death - Assessment in the hands of a non-existent company is a nullity and invalid or it is only an irregularity? - HELD THAT:- We find that the Delhi Bench of Tribunal in case of Impsat (P.) Ltd. [2004 (7) TMI 299 - ITAT DELHI-A] has held the assessment in the hands of the amalgamating company which is non-existent to be nullity and invalid. Similarly ITAT Delhi Bench in the case of Hewlett Packard India (P.) Ltd.[2006 (4) TMI 514 - ITAT DELHI] held such assessment to be invalid. We have noticed that the decision of ITAT Delhi Bench in the case of Impsat (P.) Ltd. was available at the time when ITAT Mumbai Bench heard the appeal of Century Enka Ltd.[2006 (2) TMI 596 - ITAT MUMBAI] but, the same was not brought to the knowledge of ITAT Mumbai Bench. Therefore, they had no occasion to consider the same and took a decision contrary to the decision of ITAT Delhi Bench. Thus, we respectfully following the decision of ITAT Delhi Bench in the case of Impsat (P.) Ltd. and Hewlett Packard India (P.) Ltd. and the decision of the Madras High Court in the case of Express Newspapers Ltd. [1960 (3) TMI 48 - MADRAS HIGH COURT] hold that the assessment made in the hands of non-existent company is nullity. Accordingly we quash the assessment made in the hands of Pampasar Distillery Ltd. for the assessment year under consideration, i.e., 1999-2000, 2000-01 and 2001-02, because assessment for these years were made on the date when it was not in existence. Hence, we may mention that the Assessing Officer can make the assessment of the income prior to the period of amalgamation of Pampasar Distillery Ltd. in the hands of Successor Company that is amalgamated company which is Shaw Wallace Distilleries Ltd. as per provision of sub-section (2) of section 170 of the Income-tax Act. Now it is for the revenue to initiate appropriate proceedings against the right person i.e. Shaw Wallace Distilleries Ltd. in accordance with law. At present the assessment framed against Pampasar Distillery Ltd. is liable to be cancelled being invalid. Accordingly, we cancel the assessment made in the hands of Pampasar Distillery Ltd. As we have cancelled the assessment made in the hands of Pampasar Distillery Ltd., the revenue’s appeal for assessment years 1999-2000 to 2001-02 which is against some relief allowed by CIT(A), does not survive, accordingly the same are rejected.
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