TMI Blog2006 (2) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... ommunication, 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 about the fact of amalgamation of the assessee-company, has passed the assessment order in the name of the entity which is not in existence. In these circumstances, we are of the view that the order in the name of the non-existing entity was passed on account of ignorance of the fact of amalgamation. For this reason, the assessment cannot be held to be invalid and be knocked down. We, therefore, set aside the order of the CIT(A) and restore the matter to the file of the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 to ground No. I above : 1. The Commissioner of Income-tax (Appeals) erred in upholding the action of the Deputy Commissioner of Income-tax of initiating the assessment proceedings by issue of notice under section 143(2) of the Act in the name of RPL inasmuch as it had amalgamated with CEL and, hence, was not in existence at the time of assessment proceedings. 2. The appellant prays that it be held that the issue of notice under section 143(2) on RPL which did not exist in the sense that it had amalgamated with CEL and the subsequent assessment of RPL are not curable defect within the meaning of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the fact that during the course of assessment proceedings the Assessing Officer was duly informed, vide letter dated April 27, 1998, that the honourable High Courts of Gujarat and Calcutta have sanctioned the scheme of amalgamations of Rajashree Polyfil Ltd., vide their orders dated January 27, 1998, and January 13, 1998. The Assessing Officer was accordingly requested to make the necessary entries in his records and the name of the assessee be replaced by name as Rajashree Polyfil Ltd. (RPL). Counsel for the assessee further informed, vide letter dated May 18, 1998, that Rajashree Polyfil Ltd. have been amalgamated with Century Enka Ltd. (CEL) as the claim of amalgamation was approved by the hon ble High Court of Gujarat. As such, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril 20, 1998, was also written to the Income-tax Officer, TDS, Central-1. But, nothing is placed on the record to prove that the assessee has raised this objection of jurisdiction before the Assessing Officer during the course of assessment proceedings. Moreover, once the assessee has joined the assessment proceedings he has waived his right to challenge the jurisdiction of the Assessing Officer and the validity of the assessment. In support of his plea, he invited our attention to the provisions of sections 170 and 292B of the Income-tax Act. The learned Departmental representative further contended that, at the most it can be called to a procedure irregularities, but, not illegality, for which entire assessment can be knocked down. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax, Central Circle-1, Mumbai on December 8, 1998. From a perusal of the assessment order, duration of assessment proceedings are not very clear. In any case, it is evident from the record that whatever intimations regarding the amalgamations of the Rajashree Polyfil Ltd. with Century Enka Ltd. was given, it was sent to different authorities, not to the Deputy Commissioner of Income-tax, Central Circle-1, Mumbai who has issued notice under section 143(2) and has framed the assessment under section 143(3). Since no direct communication regarding the amalgamation of the assessee-company was made to the Assessing Officer, i.e., the Deputy Commissioner of Income-tax, Central Circle-1, Mumbai, he framed the assessment in the name of Rajashree Pol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings. Since, nothing has been placed on record to prove that the Assessing Officer, despite having full knowledge about the fact of amalgamation of the assessee-company, has passed the assessment order in the name of the entity which is not in existence. In these circumstances, we are of the view that the order in the name of the non-existing entity was passed on account of ignorance of the fact of amalgamation. For this reason, the assessment cannot be held to be invalid and be knocked down. The right course is to set aside the assessment and restore the matter to the file of the Assessing Officer with a direction to reframe the assessment in the correct name of the assessee. It is only an irregularity which can be rectified by resto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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