TMI Blog2021 (4) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... address of the sender as well as the change of the address is one and the same. HCL Peripherals Limited merged with HCL Corporation Limited with effect from 01.04.2009 and both the offices are running in the same premise. Further, acknowledgement of the notice issued by the respondent has not been disputed by the petitioner. Therefore, Section 170(ii) would be applicable in the present case and the said ground cannot be considered for the purpose of quashing the entire proceedings initiated under Section 147 of the Act. Even on merits, the respondent could able to establish that there is a reason to believe in view of certain new materials noticed in the matter of purchased units of mutual funds to the extent of ₹ 52,39,18,310/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to a nonexisting entity and such a notice is invalid. Therefore, service of notice as contemplated under the Statue has not been complied with. Therefore, the writ petition is to be allowed. As on 30.03.2012, the HCL Peripherals Limited was not existing and an amalgamation was done and the company was merged with effect from 01.04.2009. However, the impugned order was issued on 17.07.2012 after amalgamation. Therefore, the impugned order is null and void. 4. The learned Senior counsel for the petitioner solicited the attention of this Court with reference to the letters sent by the HCL Peripherals Limited to the Assistant Commissioner of Income Tax on 04.05.2011, so as to establish that the change of address has been communicated to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eputy Commissioner of Income Tax furnished the reasons recorded for initiation of proceedings under Section 147 of the Income Tax Act. The said proceedings would reveal that as per the ITS Data, the assessee company has purchased units of mutual funds to the extent of ₹ 52,39,18,310/-. However, the same has not been reflected in the return of income filed by the assessee company. Hence, I have reason to believe that income chargeable to tax has escaped assessment . 6. The learned Senior Counsel appearing for the petitioner contended that the informations regarding the purchased units of mutual funds were provided to the Assessing Officer and the reasons stated are factually incorrect. In reply dated 02.01.2013, the petitioner/asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 which stipulates that income chargeable to tax has been under assessed . 10. The learned Senior Standing Counsel in order to substantiate the contention cited the judgment of the Hon'ble Division Bench of this Court in the case of Commissioner of Income Tax vs. T.V.Sundaram Iyengar Sons (P.) Ltd., reported in [1999] 238 ITR 328 (MAD.), wherein it is held as follows: 9. It is not open to the amalgamated company which has taken over all the assets and liabilities of the amalgamating company to claim that it is not in any way liable for the tax payable by the amalgamating company, even though the order under Section 104 came to be made after the order of amalgamation and after the dissolution of the amalgamating company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... succession and of the previous year preceding that year shall be made on the successor in like manner and to the same extent as it would have been made on the predecessor, and all the provisions of this Act shall, so far as may be, apply accordingly. 12. The above provision unambiguously contemplates that all the provisions of this Act shall, so far as may be, apply accordingly, when the predecessor cannot be found and the successor shall be made accountable . When Section 170(ii) contemplates that the successor Company is liable and responsible, mere service of notice in respect of company, which was not existing cannot be a ground to assail the proceedings instituted for reopening of assessment under Section 147 of the Act. Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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