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2015 (9) TMI 234 - HC - Income TaxValidity of proceedings u/s 153A - notice was issued under Section 153C on a date when the noticee has ceased to exist in the eyes of law - ITAT quashed proceedings - Held that:- De hors the decision in Spice Enfotainment Ltd. (2011 (8) TMI 544 - DELHI HIGH COURT) the undisputed fact is that on the date on which the notice was issued to the Respondent under Section 153C of the Act i.e. 10th September 2010 it was an entity that has ceased to exist in the eyes of law. The mere use of the noticee’s letterhead to address correspondence to the AO cannot tantamount to reviving an entity which has already ceased to exist. Further the mere fact that in the assessment order the AO has said that the Respondent had amalgamated with SAPL could not cure the fundamental defect in the very proceedings initiated under Section 153C of the Act i.e. a notice being issued to an entity which does not exist in the eyes of law. In that view of the matter, the Court is satisfied that the ITAT has committed no legal error in coming to the conclusion that the entire proceedings initiated under Section 153C of the Act stood vitiated and deserves to be quashed. - Decided in favour of assessee.
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