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TMI Blog2018 (3) TMI 1571X X X X Extracts X X X X X X X X Extracts X X X X ..... of income for the year under consideration was filed by it on 14.08.2008 declaring a total income of Rs. 749/-. In the assessment originally completed under section 147/143(3) vide an order dated 30.04.2010, the total income of the assessee was determined by the A.O. at Rs. 17,720/-. The said assessment was subsequently set aside by the Ld. CIT vide an order dated 28.03.2013 passed under section 263 with the direction to the A.O. to complete the assessment afresh after making proper enquiries and examinations in order to verify the genuineness and source of share capital contribution received by the assessee during the year under consideration as well as identity and creditworthiness of the share holders. In pursuance of the Ld. CIT(A)'s or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . on 30.04.2010 in the same name. He submitted that the said company namely M/s. Basundhara Goods Pvt. Ltd. was merged with M/s. Lokseva Textrade Pvt. Ltd. with effect from 19.03.2012 as per the order of the Hon'ble Calcutta High Court passed on 19.03.2012. He submitted that even M/s. Lokseva Text Trade Pvt. Ltd. thereafter was merged with M/s. Param Mitra Investments Pvt. Ltd. with effect from 01.04.2013 as per the order passed by Hon'ble Delhi High Court on 17.12.2013. He contended that even though the Assessing Officer while passing the assessment order under section 143(3)/263/147/143(3) on 25.03.2014 took cognizance of the first amalgamation of M/s. Basundhara Goods Pvt. Ltd. with M/s. Lokseva Textrade Pvt. Ltd., he failed to take into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that the defect in passing the assessment order by the A.O. in the name of amalgamating company instead of amalgamated company is curable being a procedural one. He also contended that it is a mere procedural irregularity which can be cured by invoking the provisions of section 292B of the Act. 7. We have considered the rival submissions on this preliminary issue in the light of the relevant facts of the case as well as the material available on record including the judicial pronouncements cited by the learned counsel for the assessee. It is observed that although the return of income for the year under consideration was originally filed in this case on 14.08.2008 in the name of M/s. Basundhara Goods Pvt. Ltd. and even the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or liabilities are determined under the scheme of amalgamation but the corporate entity of the transferee company ceases to exist with effect from the date, the amalgamation is made effective. 9. In the case of Spice Infotainment Ltd. (supra), the issue that arose was in the context of the A.O. having framed the assessment in the name of "Spice Corp Limited" after the said entity was dissolved consequent to its amalgamation with "MCorp Private Limited" with effect from 1st July 2003. Like in the present case, even there it was urged by the revenue that this was a procedural defect and since the amalgamated entity had participated in the assessment proceedings without raising any objection, it should be precluded from raising it thereafter. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... algamating company therefore, is assessable in respect of income upto the of amalgamation and after the amalgamation once the amalgamating company is dissolved and does not remain in existence, the income up to the date of amalgamation should be assessed in the hands of amalgamated company being the successor company in the like manner and to the same extent as it would have been assessed in the hands of amalgamating company. The assessment made on the hands of amalgamating company thus was quashed by the Tribunal by holding it as nullity as the same was made in the hands of non-existent company. Similarly the order passed under section 201(1)/201(1A) of the Act in the hands of M/s. Pawansut Management Ltd. vs ITO (ITA 1524/Kol/2016 dtd. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fference. 12. Keeping in view the legal position emanating from the various judicial pronouncements discussed above, we are of the view that the assessment made in the present case under section 143(3)/263/147/143(3) in the name of M/s. Lokseva Textrade Pvt. Ltd. on 25.03.2014 when the said company was not in existence having already merged / amalgamated with M/s. Param Mitra Investments Pvt. Ltd. with effect from 01.04.2013 as per the order of the Delhi High Court on 17.12.2013 is a nullity being bad in law and the same is liable to be cancelled. We order accordingly and allow ground no. 12 of the assessee's appeal. 13. At the time of hearing, the learned DR has contended that the A.O. may be directed to pass a fresh assessment order for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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