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2017 (8) TMI 42 - HC - Income TaxValidity of reopening of assessment - assessment against non existent entity - amalgamation scheme adopted - Held that:- The proceedings under Section 148 were itself void ab initio for the simple reason that on that day VBPPL was not in existence as a result of the order dated 20th February, 2013 of the High Court approving its amalgamation with the Petitioner with effect from 1st April, 2012. The question of revival of such proceedings at a later point in time, with there being no change to the legal position regarding VBPPL having ceased to exist, does not arise. The mere fact that prior to 20th February, 2013 (being the date of the order approving the amalgamation) VBPPL and/or the Petitioner may have responded to such notices, will to make a difference to the said legal position. The facts show that after 20th February 2013, the Petitioner lost no opportunity in reminding the AO at every stage that VBPPL no longer existed in the eye of law. Despite being made aware of this legal position, the AO persisted in continuing the proceedings against VBPPL. A second aspect of the matter is that the reassessment proceedings under Section 147 were barred by limitation since limitation for framing the assessment under Section 143(3) read with Section 147 of the Act expired on 31st March, 2014. On this ground also, the question of revival of those proceedings by the impugned letter dated 14th March, 2016 was bad in law. Thus reopning order quashed - Decided in favour of assessee.
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