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2024 (4) TMI 20 - HC - Income TaxReopening proceedings against non-existent entity/partnership firm - HELD THAT:- Since the partnership firm-M/s Parikh Sales has merged with the petitioner-M/s Parikh Marketing Pvt. Ltd. with it’s all assets and liabilities which were also taken over by the company and therefore, M/s Parikh sales became a non-existent partnership firm.The Petitioner had also informed to the Department on 20.04.2009 about this conversion and changing in constitution. In pursuance to Show Cause Notice u/s 148A(b) in the name of partnership firm, a detailed joint show cause reply was also filed on behalf of the partnership firms and the petitioner stating all the past facts with evidences that it has been acquired by the company and stated that the amount deposited in Axis Bank was duly considered in the return of the company and there was no escapement and as such the case should not be reopened u/s 147 of the Act and the entire proceedings be dropped. It transpires that the respondent No. 2, without making any further clarification or without giving any opportunity of personal hearing, passed final Order u/s 148A(d), giving only one line finding on merits that “the case was examined and found that transaction in the above bank account of M/s Parikh Sales has been made and no ITR has been filed for the above AY” and concluded that it is fit case for issuance of notice u/s 148 of the Act, for the Assessment Year 2019-20 in the case of M/s Parikh Sales. Thus, no hesitation in holding that the impugned order passed u/s 148A(d) is without application of mind, passed in a casual stereotype manner and is a non-speaking order. It further transpires from record that when the petitioner logged on at the IT Portal under the PAN of the erstwhile dissolved partnership firm M/s Parikh Sales being PAN ID AACFM7615D; an error message was reflected that “PAN does not exist”. Now it is settled legal proposition that no valid notice can be issued against a dead person [Refer Durlabhbhai Kanubhai Rajpara [2019 (4) TMI 784 - GUJARAT HIGH COURT] Thus impugned notices could not have been served upon Assessee, and same deserves to be quashed. Decided in favour of assessee.
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