9911796707
TMI Blog2006 (2) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... under : Ground No. I 1. On the facts and the circumstances of the case and in law, the Commissioner of Income-tax (Appeals)-Central I, Mumbai [the CIT(A)], erred in upholding the action of the Deputy Commissioner of Income-tax, Central Circle-1, Mumbai ("the DCIT"), of initiating the assessment proceedings by issue of notice under section 143(2) of the Income-tax Act, 1961 ("the Act"), in the name of Rajashree Polyfils Ltd. (RPL) inasmuch as it had amalgamated with Century Enka Ltd. ("CEL") and, hence, was not in existence at the time of assessment proceedings. 2. The appellant prays that the assessment be held to be ab initio void, illegal, in operative and bad in law and as such liable to be quashed. Ground II Without prejudice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The appellant, therefore, prays that the Deputy Commissioner of Income-tax be directed to allow deduction of interest under section 57(iii) of the Act against interest and dividend income. 2. Through ground No. 1, the assessee has assailed the validity of the assessment order on the ground that the assessment was framed in the name of the company which was not in existence at the relevant point of time when the assessment order was passed. Since the assessment order was passed in the name of non-existing entity, it deserves to be quashed on this score. 3. Learned counsel for the assessee has invited our attention to the fact that during the course of assessment proceedings the Assessing Officer was duly informed, vide letter dated A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative, on the other hand, has pointed out that the Assessing Officer has joined the assessment proceedings and did not raise this objection before the Assessing Officer. He further invited our attention to the assessment order and the notice issued under section 143(2) with the submissions that the assessment proceedings were conducted and assessment was framed by the Deputy Commissioner of Income-tax, Central Range-1, whereas, the assessee has sent these intimations either to the Assistant Commissioner of Income-tax, Central Range-1 or the Additional Commissioner of Income-tax, Central Range-1. A letter dated April 20, 1998, was also written to the Income-tax Officer, TDS, Central-1. But, nothing is placed on the record to prove th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved by the High Court of Gujarat at Ahmedabad, vide order dated February 27, 1998, and intimation to this effect was also sent by counsel for the assessee M/s. Kumarji and Co., vide letter dated May 18, 1998. But, this intimation was sent to the Assistant Commissioner of Income-tax, Central Circle-1, Commissioner of Income-tax (Appeals) and the Additional Commissioner of Income-tax (Appeals), Central Range-1, whereas, the notice under section 143(2) was issued by the Deputy Commissioner of Income-tax, Central Circle-1, Mumbai on November 30, 1998, and the assessment was also framed by the Deputy Commissioner of Income-tax, Central Circle-1, Mumbai on December 8, 1998. From a perusal of the assessment order, duration of assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment is framed in the name of the deceased persons or in the name of a non-existent entity due to ignorance of the fact, even then, the assessment is bad and the defect is not curable ? 7. In the instant case, we find that the return of income was filed in the name of RPL and intimation under section 143(1) was also issued in the same name. During the course of assessment proceedings, though the assessee has written letter to various authorities, but, we do not find any communication, directly made to the Assessing Officer with regard to the amalgamation of this company though the assessee has joined the assessment proceedings. Since, nothing has been placed on record to prove that the Assessing Officer, despite having full knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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