Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 717 - AT - Income TaxReopening of assessment u/s 147 - scheme of amalgamation conceived - notice in the name of non-existing entity - addition u/s 68 - Undisclosed share application money / share premium - HELD THAT:- In spite of the intimation of amalgamation being given to the ld. Assessing officer he failed to consider the same and passed the assessment order on 28.12.2017. It also establishes that there is no force in the contention of the Ld DR, that assessee had not taken the plea at the appropriate stage. Thus, what can be concluded is that at the time of issuance of notice u/s 148 on 25.08.2014, the company petition for scheme of amalgamation was pending before Hon’ble Delhi High Court and after issuance of the notice on 25.08.2014 the assessee by letter dated 14.09.2014 had intimated of the amalgamation which was effective from 01.04.2013. Hon’ble Delhi High Court in the case of Spice Enfotainment Ltd. vs. CIT[2011 (8) TMI 544 - DELHI HIGH COURT]has held that the framing of assessment against non-existing entity / person goes to the root of the matter which is not a procedural irregularity but jurisdictional defect. This order has been upheld by the Hon’ble Supreme Court of India in CIT, New Delhi vs. Spice Infotainment Ltd. [2017 (12) TMI 754 - SC ORDER] As a matter of fact, in a case reported in NIRVANA LIFESTYLE PVT. LTD. [NOW MERGED WITH M/S TTJ IMPEX PVT. LTD.] VERSUS THE A.C.I.T., CENTRAL CIRCLE-29, NEW DELHI [2018 (3) TMI 1879 - ITAT DELHI] with regard to an assessee company M/s. Nirvana Lifestyle Pvt. Ltd., which had also merged with TTJ Impex Pvt. Ltd and was one of the Co petitioner of present assessee in the Company petition no 644 of 2013, a Coordinate Bench of ITAT, Delhi had set aside re-assessment and assessment holding them to be in the name of non-existing entity. Assessee appeal allowed.
|