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2016 (11) TMI 332 - HC - Income TaxValidity of notice - assessment against a nonest entity - Held that:- It is not in dispute that on the date when notice was issued on 5.10.1998 in the name of M/s. Calcutta Instalment Pvt. Ltd. or when assessment order was passed in name of M/s. Calcutta Instalment Pvt. Ltd., it had already ceased to be in existence having been amalgamated with M/s. Modifin (P) Ltd. The factum of amalgamation was well within knowledge of Assessing Officer on the date when assessment was made still it proceeded to issue notice dated 5.10.1998 and made assessment in respect to a legal person which had already ceased existence after amalgamation with another company. Assessment can be made against a person who is in existence. When after amalgamation, company undergone amalgamation has ceased to exist, assessment against a nonest entity is illegal and void. Tribunal has also taken same view relying on judgment of Delhi High Court in Birla Cotton Spinning & Weaving Mills Ltd. vs. CIT, (1979 (12) TMI 50 - DELHI High Court ). - Decided in favour of assessee.
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