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2018 (6) TMI 1046 - AT - Income TaxValidity of assessment order - non-existent entity (Liquidated company) - The contention of the assessee is that company was wound up on 24/05/2013, whereas the assessment under section 143(3) read with section 144C(13) of the Act has been completed on the said company on 30/01/2017, thus, the assessment has been completed on a non-existence entity, which is illegal and void - Held that:- In case of discontinuance of the business, the assessee is required to inform to the Assessing Officer and also in case of the liquidation, the liquidator of the company is required to give notice to the Assessing Officer, who is entitled to assess the income of the company. In the instant case, there is no such information available on record, whether the Assessing Officer was informed about the discontinuance of the business or the liquidation process of the company. Though the Ld. counsel submitted that the Assessing Officer was informed about the dissolution of the company but no such information has been provided by the Ld. counsel of the assessee before us that the information was provided as per the requirements of the Act. The issue of validity of making assessment on non-existence entity has been decided by the Hon’ble Delhi High Court in the case of Spice Infotainment Limited Vs. CIT, [2011 (8) TMI 544 - DELHI HIGH COURT], wherein it is held that the assessment in the name of the company which has been amalgamated with another company and stands dissolved, is null and void - however, this is the case of succession of entity and not of winding up of the entity, and is not applicable to the facts of the present case. In the instant case, the compliance of the assessment proceeding before the Assessing Officer has been made from time to time by the persons authorized in this behalf and proceedings have not been challenged due to lack of jurisdiction. According to the available records, the validity of the jurisdiction has been challenged for first time before the Ld. DRP. In view of the above circumstances, the assessment order should not be nullified. There is no information, whether the assessee complied with various provisions of the Act related to responsibility of company in- liquidation or discontinuity of business. In the circumstances, it is appropriate to set aside the assessment passed and restore the matter to the file of the AO/TPO.
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