TMI Blog2016 (11) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... nce after amalgamation with another company. Assessment can be made against a person who is in existence. When after amalgamation, company undergone amalgamation has ceased to exist, assessment against a nonest entity is illegal and void. Tribunal has also taken same view relying on judgment of Delhi High Court in Birla Cotton Spinning & Weaving Mills Ltd. vs. CIT, (1979 (12) TMI 50 - DELHI High Court ). - Decided in favour of assessee. - Income Tax Appeal Defective No. 171 of 2006 - - - Dated:- 21-7-2016 - Hon'ble Sudhir Agarwal And Hon'ble Kaushal Jayendra Thaker, JJ. For the Appellant : S. C.,A. N. Mahajan For the Respondent : P. Agrawal ORDER 1. Heard Sri Krishna Agrawal, learned counsel for appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td.,M/s. Delhi Holdings (P) Ltd., M/s Dunes Investments (P)Ltd., and M/s. Helm Holdings (P) Ltd. were within the jurisdiction of this Court, a petition was filed being C.P. no. 28/1996 praying for sanction of scheme for amalgamation, referred to above. Court by order dated 11.10.1996 sanctioned scheme of amalgamation. The operative portion of order of this Court reads as follows:- (1) That all the property, rights and powers of the transferor companies specified in the first, second and third parts of the Schedule hereto and all other property, rights and powers of the Transferor companies be transferred without any further act or deed to the transferee company and accordingly the same shall pursuant to section 394(2) of the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any person interested shall be at liberty to apply to the Court in the above matter for any directions that may be necessary, (6) The Scheme of Amalgamation as approved and confirmed by this Court will be effective from 16th May, 1996 i.e. the Appointed Date in terms of the Scheme. 5. Another company namely M/s. Indian Management Advisors and Leasing (P) Ltd. alongwith its Subsidiary, namely, IRS Investments (P) Ltd. also sought to be amalgamated with Modifin (P) Ltd. w.e.f. 16th May, 1996 under the same scheme of Amalgamation. Since registered offices of these two Transferor companies were in Delhi, a petition was filed for sanction of amalgamation scheme before Delhi High Court, who sanctioned Scheme of amalgamation of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion-2. 9. Per contra, learned counsel for respondent submitted though notices were issued to M/s. Calcutta Instalment Pvt. Ltd. but there was no company in existence in the name of M/s. Calcutta Instalment Pvt. Ltd. since it had already merged and a new entity came into existence, hence notice issued by Income Tax authorities were nonest. 10. It is not in dispute that Assessing Officer received letter dated 9.11.1998 sent by Modifin P. Ltd. Informing that M/s. Calcutta Instalment Pvt. Ltd. has amalgamated with Modifin P. Ltd. still assessment was made in the name of M/s. Calcutta Instalment Pvt. Ltd. which was nonest when order dated 17.12.98 was passed. 11.. We find, if company 'A' has merged, before assessment with com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... good ground to differ with the said judgment of the Delhi High Court. . Court followed Delhi High Court's judgment in Spice Infotainment Ltd. vs. CIT (2012) 247 CTR(Delhi) 500 and held that assessment against a company which has already merged is nonest, null and void and without jurisdiction against such a company. 16. In Commissioner of Income Tax vs. Micron Steels P. Ltd. And another (2015) 372 ITR 386(Delhi) again, decisions in Spice Infotainment Ltd.(supra) and Saraswati Industrial Syndicate Ltd.(supra) were followed and Court reiterated proposition that completion of assessment in respect of a non-existent company, due to amalgamation order, would render assessment in the name and in respect of original assessee company, a nul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
