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2014 (4) TMI 554 - AT - Income TaxValidity of proceedings u/s 153C of the Act – Assessee Company amalgamated into other Company – Assessment of a non-existent Company – Held that:- CIT(A) rightly held that a company incorporated under the Indian Companies Act is a juristic persons - It takes it berth and gets life with incorporation and it dies with the dissolution as per the provision of the Companies Act - On amalgamation, the company seizes to exists in the eyes of the law - Thus, assessment upon a dissolved company is impressible as there is no provisions in Income Tax Act to make an assessment - assessment on a company which has been dissolved by amalgamation u/s. 391 and 394 of the Companies Act, 1956 is invalid. Assessment upon a dissolved company is impermissible as there is no provision in the I.T. Act to make an assessment upon a non-existent company – Relying upon Saraswati Industrial Syndicate Ltd. vs. CIT [1990 (9) TMI 1 - SUPREME Court] - The amalgamation is a blending of two or more existing undertaking into one undertaking, and the shareholders of each blending company become substantially the shareholders in the company which is to carry on the blending undertakings – thus, no assessment can be framed on a non-existent entity – Decided in favour of Assessee.
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