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2016 (4) TMI 694 - AT - Wealth-taxValidity of initiation of the proceedings u/s. 17 of W.T. Act - notice issued in the name of a non-existent amalgamating company - Held that:- Notably, ACRL, which was visited with the notice u/s. 17 of the Act had since amalgamated with ACL on 1.6.2004 in terms of an amalgamation scheme sanctioned by the BIFR. It is a trite law that initiation of the proceedings for reopening of the assessment hinges upon the service of a valid notice in terms of Sec. 17 of the Act. Ostensibly, the notice issued to a person who is not in existence at the time of issuance of such notice renders such initiation invalid. In the present case, the fact that the amalgamated company, i.e. ACL, subsequently appeared in the proceedings cannot take away from the fact that the notice u/s. 17 of the Act was bad in law and such defect cannot be cured merely on account of the fact that the amalgamated company appeared subsequently. It is a well established position of law that the defect in the notice of reopening cannot be cured because it goes to the root of the jurisdiction to reopen the proceedings. - Decided in favour of assessee
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