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2020 (10) TMI 350 - AT - Income TaxValidity of reopening of assessment u/s 147 - non issuance and service of a valid notice under section 148 and impugned assessment had been completed in the name of a non-existent entity - scheme of amalgamation undertaken - Jurisdiction of AO issuing notice - HELD THAT:- It is a settled law that upon a scheme of amalgamation being sanctioned, the amalgamating Company ceased to exist in the eyes of law & it cannot be regarded as a “person” in terms of Section 2(31) of the Act and consequently no assessment proceeding can be initiated or an assessment order can be passed. See MARUTI SUZUKI INDIA LIMITED [2019 (7) TMI 1449 - SUPREME COURT] wherein held that the issuance of jurisdiction notice and assessment thereafter passed in the name of non-existing company i.e. amalgamating Company having ceased to exist as a result of approved scheme of amalgamation is a substantive illegality and not a procedural violation of nature adverted to in S. 292B and hence being without jurisdiction. As the notice u/s 148 was issued by the AO at Hyderabad. The reasons for reopening were also recorded by AO at Hyderabad. The reassessment order was framed by AO at Delhi. The AO at Delhi had followed the reasons recorded by the AO, Hyderabad meaning thereby that he proceeded in framing the assessment on the basis of borrowed satisfaction of the AO, Hyderabad. In such a situation, we are of the view that the AO at Delhi had not validity assumed the jurisdiction to initiate the reassessment proceedings as he had merely followed the reasons recorded by AO, Hyderabad who had no jurisdiction over the Assessee. Reassessment proceedings initiated against the Assessee needs to be quashed and we accordingly hold so. Thus the Grounds of Assessee are allowed.
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