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2006 (4) TMI 514 - AT - Income TaxValidity Of assessment proceedings - Notice against non existent/ceased company - scheme of amalgamation being sanctioned - Applicability of sec 170 - whether after dissolution of a company and after the intimation of such dissolution with the ROC an assessment can be made on dissolved company or not - HELD THAT:- In the case of Birla Cotton Spinning and Weaving Mills Ltd. vs. CIT [1979 (12) TMI 50 - DELHI HIGH COURT] was dealing with a case where proceedings were initiated and orders of assessments made on Amalgamating Companies, which cease to exist. An order of assessment was made on companies which ceased to exist after the date of dissolution of Amalgamating Company without the process of winding up. Thus, it is clear that the assessment made in the present case in the name of HP India after the date of its dissolution is not valid. The fact that this company filed a return of income is not of any consequence. The order of assessment was made on 25.2.2005. As on this date HP India as an entity did not exist. The assessment is therefore held to be invalid and is cancelled. In a case of amalgamation where one entity takes over the business of two other entities, the same would be a case of succession to business, otherwise on death and therefore the provisions of Sec. 170 of the Act would apply. We therefore hold that the assessment in the name of H.P.India is null and void and the assessment is therefore held to be invalid and is cancelled. In view of the decision on this preliminary issue the other issues raised by the assessee are not taken up for consideration.
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