TMI Blog2021 (2) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... ively are liable to be quashed being not sustainable in the eyes of law, hence finding no illegality or perversity in the impugned orders passed by the ld. CIT (A) in the aforesaid appeals quashing the assessment orders passed by the AO, present appeals filed by the Revenue are hereby dismissed. - ITA No.4311/Del./2016, ITA No.4312/Del./2016, ITA No.4312/Del./2016 - - - Dated:- 17-2-2021 - Shri R.K. Panda, Accountant Member And Shri Kuldip Singh, Judicial Member For the Assessee : Shri M.P. Rastogi, Advocate, Shri Deepak Malik, Advocate For the Revenue : Shri H.K. Choudhary, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in the inter-connected appeals, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shahi Exports Group of assessee on 16.01.2013, some documents were seized from which it was established that the assessee has earned unaccounted interest income from these groups which has not been accounted for in the books of the assessee. This search operation was conducted as a part for larger search coverage in the cases of K.S. Dhingra, G.S. Dhingra, M/s. U.K. Paints (India) along with group entities of Shahi Exports and Span India group and certain other entities. Assessing officer (AO) completed assessment u/s 153A read with section 143 (3) of the Act at total income (loss) Rs.(-)5,91,93,421/-, ₹ 23,25,98,313/- ₹ 8,40,59,413/- for AYs 2008-09, 2009-10 2010-11 respectively. 4. The assessee carried the matter bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s 132 of the Act has been taken in the name of the assessee, the AO has rightly framed the assessment in the name of M/s. Sarla Fabrics Pvt. Ltd. 9. However, on the other hand, ld. AR for the assessee to repel the arguments addressed by the ld. DR for the Revenue contended that the factum of amalgamation of the assessee company which took place with effect from 31.10.2010 has been duly intimated to the Investigating Wing of the Income-tax Department at the time of search seizure operation as well as during the framing of assessment by the AO u/s 153 r.w.s. 143 (3) of the Act and that assessment in the name of non-existent entity is illegal, bad in law and non est and relied upon Hon ble Delhi High Court in case of CIT vs. Spice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been merged with some other entity being nullity is settled. Hon ble Delhi High court in case of Spice Enfotainment Ltd. vs. CIT (supra) quashed the assessment in the identical facts by returning following findings :- 12. 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 of the Act. - provisions of Section 2928 of the Act are not applicable in such a case. - The framing of assessment against a non-existing entity/person goes to the root of the matter which is not a procedural irregularity but a jurisdictional defect as there cannot be any assessment against a dead person. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in Spice Enfotainment has been followed in the case of the respondent while dismissing the Special Leave Petition for AY 2011-2012. In doing so, this Court has relied on the decision in Spice Enfotainment. 34. We find no reason to take a different view. There is a value which the court must abide by in promoting the interest of certainty in tax litigation. The view which has been taken by this Court in relation to the respondent for AY 2011-12 must, in our view be adopted in respect of the present appeal which relates to AY 2012-13. Not doing so will only result in uncertainty and displacement of settled expectations. There is a significant value which must attach to observing the requirement of consistency and certainty. Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n discussed above and by relying upon the judgments rendered by Hon ble Apex Court and Hon ble jurisdictional High Courts discussed in the preceding paras, we are of the considered view that when the aforesaid amalgamating company, assessee in this case, has ceased to exist by virtue of the approved scheme of amalgamation w.e.f. 31.03.2010 by the order passed by the Hon ble Delhi High Court, AO was not within his jurisdiction to frame the assessment in the name of non-existent company, consequently assessment orders dated 27.03.2015, 30.03.2015 30.03.2015 for Assessment Years 2008-09, 2009-10 2010-11 respectively are liable to be quashed being not sustainable in the eyes of law, hence finding no illegality or perversity in the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
