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2021 (12) TMI 457 - AT - Income TaxAssessment in the name of company amalgamated - validity of assessment in name of a non-existent company - HELD THAT:- No fault with the Ld. CIT(A) in following the decision of the Hon’ble Apex Court in the case of Saraswati Industrial Syndicate Ltd (1990 (9) TMI 1 - SUPREME COURT] wherein it was held that when two companies amalgamated merged into one, the transfer company loses its entity as it serious to have its business, and their respective rights are liable to be determined under the scheme of amalgamation, but the corporate entity of the transfer company ceases to exist with effect from the date of the amalgamation is made effective. In this matter the amalgamation was effective from 1/4/2011 under the order dated 17/08/2012 passed by the Hon’ble Delhi High Court under section 391 (2) and 394 of the Companies Act, 1956. The decision of the Hon’ble High Court in the case of Skylight Hospitality LLP [2018 (2) TMI 1093 - DELHI HIGH COURT] has no application to the facts of the case since in such case the notice issued on the amalgamating company was challenged. In this case, however, the assessee specifically brought it to the notice of the learned Assessing Officer that there was a merger of the companies, and there was a direction of the Ld. PCIT to issue notice and hear they correct the existing legal entity. However, there is failure on the part of the learned Assessing Officer to comply with the said direction inasmuch as he issued notices to the non-existent company and completed the assessment on it Under similar circumstances, in the case of a group company a coordinate Bench of this Tribunal in ACIT vs. M/s. Pride Redidency (P) Ltd ) [2019 (12) TMI 694 - ITAT DELHI]upheld the action of the Ld. CIT(A) in crashing the assessment order that was framed in case of the nonexisting company - Decided against revenue.
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