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2018 (4) TMI 46 - AT - Income TaxTDS u/s 194C - non deduction of tds - proceedings against a person who is not in existence - existence after its amalgamation / merger - Held that:- The law is well settled that the proceedings against a person who is not in existence is null and void and has no legal effect. Under the Income Tax Act, 1961 an assessment can be made only against a person as defined u/s 2(31) of the Act. A company after it is dissolved cannot be said to be a person in terms of that section. On amalgamation, the amalgamating company stands dissolved without winding up. In other words, the amalgamating company ceases to exist in the eyes of the law. Though rules of abatement of suits under the Civil Procedure Code would not apply to assessment proceedings under the Income Tax Act, as the ITO was not a Court but the principle of representation applicable to regular suits and proceedings under the Civil Procedure Code would well apply to such proceedings. The existence of an assessee is essential for an assessment. There cannot be an assessment of a non-existent person - present proceedings u/s 201(1) and 201(1A) of the Act held to be invalid and hereby annulled. - Decided in favour of assessee.
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