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TMI Blog2019 (12) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... ) confirmed the same, but the Tribunal allowed the appeal of the assessee. According to the impugned order, the Hon'ble High Court restored the matter to the Tribunal. 3. While the matters stood thus, pursuant to the search and seizure operations carried out in Sanskar group of cases on 7/8/2010, covering assessee also under section 132/133A of the Act, assessment in the case of the assessee was completed under section 153A of the Act read with section 143(3) of the Act by order dated 26/3/2013 at an income of Rs. 2,47,53,650/-. The appeal was preferred by the assessee; subsequently, the same was withdrawn and dismissed by order dated 08/01/2014. Thereafter, the assessee preferred revision application under section 264 of the Act. The Ld. PCIT vide order dated 30/3/2015 passed an order under section 264 of the Act,quashing the assessment made by the Assessing Officer under section 153A of the Act holding that the Assessing Officer had committed an error inasmuch as had passed an order in the name of a non-existent company, and therefore, he directed the Assessing Officer to reassess the income in the hands of the existing correct legal entity after giving proper opportunity of bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to 1, the transferor company loses its entity as the decisions to have its business, and their respective rights and liabilities are determined under the scheme of amalgamation, but the corporate entity of the transferor company ceases to exist with effect from the date the amalgamation is made effective. Ld. CIT(A), therefore, held that, though the learned Assessing Officer was directed in section 264 of the Act to reassess the income in the hands of the existing correct legal entity and as a matter of fact was aware of such directions, failed to follow the same while completing the assessment and assessed the income in the hands of a non-existing company, which had ceased to exist after sum of commission, and, therefore, the assessment order rendered void and was liable to be quashed. He accordingly quashed the same. 8. Challenging such an order, Revenue is in this appeal before us stating that the income of the searched company (amalgamating company) was correctly assessed in the hands of the amalgamated company, namely, M/s Pride Residency Private Limited and, therefore, Ld. CIT(A) was in error in quashing the same. It is argued by the Ld. DR that the notice was issued in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equent to the search on 07/08/2010 on the Sanskar group, Satkar once again was assessed under section 153A/143(3) of the Act vide order dated 26/3/2013 by the learned Assessing Officer, CC-3, New Delhi at an income of Rs. 44,06,260/-, without there being any incriminating evidence. 11. At this stage, Satkar, through the amalgamated company "Pride Residency Private limited" filed an appeal before the Ld. CIT(A). In between the assessee filed a rectification obligation under section 154 before the Assessing Officer and the learned Assessing Officer by order dated 12/9/2013 reducing the demand to Rs. 204/-, upon which the assessee company withdrew the appeal before the Ld. CIT(A). Assessee however, filed a written application under section 264 of the Act and the Ld. PCIT by order dated 30/3/2015 quashed the assessment order dated 26/3/2013 on the ground that the notice was issued and the assessment order was passed on a non-existent company, namely, Satkar which had ceased to exist after its amalgamation with the Pride Residency Private Limited and therefore, Ld. PCIT directed the Assessing Officer to reassess the income in the hands of the existing correct legal entity after giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the record, Ld. PCIT in the order dated 30/3/2015 passed under section 264 of the Act, observed that the assessment made by the Assessing Officer under section 153A of the Act has been quashed on technical grounds because the learned Assessing Officer issued notice and completed the assessment in the name of non-existing company as the company had ceased to exist after its amalgamation; that there is also no denying of the fact that consequent to the search and seizure action upon the company, there were significant material before the Assessing Officer and the Assessing Officer had completed the assessment of the company after considering the material before him and after making verification and scrutiny and affording the opportunity to the assessee; that the only error which the learned Assessing Officer had committed was that the order was passed in the name of a non-existing company; that this being a technical error, the Assessing Officer was directed to reassess the income in the hands of the existing correct legal entity after giving proper opportunity of being heard to the assessee and after the examination, scrutiny of all the relevant material and verification, includin ..... 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