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2015 (4) TMI 917 - AT - Income TaxInitiation of proceedings u/s 153C of the Income Tax Act, 1961 - Company non-existent on account of its merger - Notice not served to amalgamated company - Held that:- In the present case it is an admitted fact that the assessee company amalgamated with M/s Windchimes Constructions Pvt. Ltd. w.e.f 01.04.2008 vide order dated 16.08.2010 of the Hon’ble Jurisdictional High Court and the assessee informed the AO about this fact vide letter dated 27.08.2010 (copy of which is placed at page no. 3A of the assessee’s paper book) and the letter dated 23.08.2010 filed on 27.08.2010 with the Income Tax Department (copy of which is placed at page no. 3 of the assessee’s paper book). Therefore, this fact was in the knowledge of the AO that the assessee was not inexistence at the time of preparation of the satisfaction note dated 05.07.2010 (copy is placed at page no. 1 of the assessee’s paper book) for issuing notice u/s 153C of the Act. From the above facts, it is clear that the notice u/s 153C of the Act by the AO was not issued to M/s Windchimes Constructions Pvt. Ltd. with which the assessee company i.e. M/s Mevron Projects Pvt. Ltd. amalgamated. Therefore, the assessment framed vide order dated 31.12.2010 u/s 153C/143(3) of the Act on the assessee was not valid. Similar issue had been adjudicated in the case of M/s Micra India Pvt. Ltd. [2013 (11) TMI 679 - ITAT DELHI] and Khurana Engineering Ltd. [2013 (2) TMI 128 - GUJARAT HIGH COURT]. In view of the aforesaid discussion and keeping in view the ratio laid down in the above said judicial pronouncements, we are of the view that for making the assessment, it is absolutely essential that the person so to be assessed should be in existence at the time of making the assessment. In the present case the assessment has been framed by the AO on a date when the present assessee was not in existence and M/s Windchimes Constructions Pvt. Ltd. was fastened with the liability of the assessee but no notice was issued to the said amalgamating company i.e. M/s Windchimes Constructions Pvt. Ltd., therefore, the assessment framed by the AO vide assessment order dated 31.12.2010 was not valid. - Decided in favour of assessee.
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