TMI Blog2018 (1) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... was carried out at the residential and business premises of Sh. S. K. Jain and Sh. Virendra Kumar Jain on 14.09.2010. During the course of search proceedings, it was noticed that a number of companies were being managed from the residential as well as business addresses related to the aforesaid persons. The AO observed that all the books of accounts and other relevant paper of those companies were found from the residence of Sh. S. K. Jain and Sh. Virendra Kumar Jain and nothing was found at the other addresses which were mentioned in the statutory record of those companies. He further observed that detailed information about the accommodation entry being given by Sh. Surendra Kumar Jain and Sh. Virender Kumar Jain who controlled/managed the companies, was received from the directorate of Income Tax ( Inv.), New Delhi. The AO made an addition of ₹ 3,00,00,000/- in the returned income of the assessee at ₹ 1,74,14,300/- by passing the assessment order dated 19.03.2013 u/s 147 r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act). 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the validity of the assessment f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Officer, Ward-12 (3)], Director of Income Tax, TP-1, New Delhi, Additional Commissioner of Income Tax-12 New Delhi and Commissioner of Income Tax - 4, New Delhi vide separate letters each dated 19th October, 2008 (copies of which are placed at page 900 to 907 of the assessee s paper book) and order of the Hon ble Delhi High Court dated 25th July, 2008 for the aforesaid amalgamation is placed at page no. 908 to 918 of the assessee s paper book. It is also noticed that the AO referred the matter u/s 92 CA of the Act of the amalgamated assessee company HDTS to the TPO who passed the order dated 25.10.2010 on the aforesaid entity. The AO also passed the assessment order dated 22.2.2011 u/s 144C / 143(3) of the Act on the aforesaid entity i.e. HDTS which amalgamated in HICS, therefore, it is crystal clear that the entity HDTS was not in existence when the TPO as well as the AO passed their respective order. 9. On a similar issue, the ITAT Delhi Bench I-1, New Delhi having the same combination passed a detailed order authored by the AM in the case of M/s Maruti Suzuki India Ltd. vs. Dy. CIT reported in (2016) 72 taxmann.com. 164. and the relevant findings have been given as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the case could be ted for scrutiny and assessment proceedings could be initiated, M/s Spice got amalgamated with M Corp Pvt. Ltd. It was the result of the scheme of the amalgamation filed before the Company Judge of this Court which was dully sanctioned vide orders dated 11th February, 2004. With this amalgamation made effective from 1st July, 2003, M/s Spice ceased to exist. That is the plain and le effect in law. The scheme of amalgamation itself provided for this consequence, inasmuch as simultaneous with the sanctioning of the scheme, M/s Spice was also stood dissolved by specific of this Court. With the dissolution of this company, its name was struck off from the rolls Companies maintained by the Registrar of Companies. A company incorporated under the Indian Companies Act is a juristic person. It takes its birth and gets life with the incorporation. It dies with the dissolution as per the provisions of the Companies Act. It is trite law that on amalgamation, the amalgamating company ceases to exist in the eyes of law. In view of the aforesaid clinching position in law, it is difficult to digest the circuitious route adopted by the Tribunal holding that the assessment wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertaining to a discontinuation of business, does not apply to a case of amalgamation. The language of section 159 evidently only applies to natural persons and cannot be extended through a legal fiction, to the dissolution of companies. Once it is found that assessment is framed in the name of non-existing entity it does not remain a procedural irregularity of the nature which could be cured by invoking the provisions of section 292B. Participation by the amalgamated company in assessment proceedings would not cure the defect because there can be no estoppels against law. 15. In the present case also when the assessment was framed by the AO vide order dated 29.12.2015 in the name of M/s Suzuki Powertrain India Ltd., the said company had already amalgamated with M/s Maruti Suzuki India Ltd. and therefore, it was not inexistence. Moreover, it is clear from the provisions of Section 170(2) of the Act that in the case of amalgamation, the assessment must be made on the successor i.e. the amalgamated company and not on the predecessor i.e. amalgamating company. Therefore, in the present case, the assessment framed by the AO vide order dated 29.12.2015 on the amalgamating company ..... X X X X Extracts X X X X X X X X Extracts X X X X
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