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2023 (2) TMI 867 - ALLAHABAD HIGH COURTReopening of assessment u/s 147 - Validity of notice issued to transferor company post amalgamation - information received by the assessing officer arising from the transaction of sale of immovable property - HELD THAT:- In the present case involving reassessment, it has material bearing that the reassessment notice was never issued against the transferee company i.e. the present petitioner. In fact, no notice was ever issued to the petitioner company at its email address etc. Also, in the context of reassessment proceedings, the assessing authority is always required to act mindful of the earlier assessment, if any. On the own showing of the revenue, the assessing authority of the transferor company has proceeded to issue the reassessment notice without examining the record of that assessee and without taking note of the event of merger and the subsequent order passed in the case of the merged entity i.e. the present petitioner. Unless that assessment order had been first examined by the assessing authority, it is difficult to visualize a situation where he may have entertained any "reason to believe" that any income had escaped assessment. The present observation has been made conscious of the discussion in the original assessment order dated 30.12.2017 wherein not only the fact of the merger of the two entities had been taken note of but also that assessing authority had taken note of the transaction of sale of immovable property at Rs. 68 crores. That transaction alone appears to have given rise to re-assessment proceedings against the transferor company. Therefore, it does appear, it has escaped the attention of assessing authority to examine the effect of original assessment order. What exact inference the assessing authority may draw on such material is left to be considered by that authority. Any observation made in this order may not bind that authority to that extent. Thus the assessment order made against the transferor company is without jurisdiction - Decided in favour of assessee.
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