TMI Blog2021 (7) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... 015, the Deputy Commissioner of Income Tax, narrated the entire facts and circumstances for the mistake earlier committed by the department and thereafter, the proceedings were conducted in the correct name of the petitioner and the final assessment order was passed. The petitioner was provided with an opportunity to defend their case in the manner prescribed and there is no dispute between the parties that the assessment order was passed by following the procedures contemplated. This Court is of the considered opinion that, in the present case, the proceedings were continued and the assessment order has already been passed and subsequently, the Writ Petitions are filled, challenging the draft assessment order as well as the final assessment order. In view of the fact that the mistake crept in at the initial stage was identified by the department and subsequently corrected and the proceedings thereafter were continued in the name of the petitioner, there is no reason to interfere with the process of reassessment already completed and it is for the petitioner to redress their grievances, if any exist, by preferring an appeal, in the manner prescribed under the Act. This Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued by the respondent to a non-existing person and all further proceedings became invalid and thus, the initiation of reopening proceedings itself is untenable. Secondly, the learned Senior Counsel urged this Court that the notice was issued on the last date on 31.03.2015 i.e., the expiry date and the said notice under Section 148 was communicated beyond the expiry date and was received by the petitioner only on 04.04.2015 and on 06.04.2015. In this context, it is contended that mere issuance of notice on the last date would not validate the notice, but the said notice issued must be despatched on the same day, then alone it can be validated and in the present case, the notice was acknowledged by the petitioner on 04.04.2015 and it was franked by the postal department on 01.04.2015. Thus, the very issuance of notice is beyond the period of limitation and on that ground also, the notice itself is to be set aside. Even the subsequent communications sent by the respondent were in the name of a Company, which was no longer in existence. Therefore, for the purpose of the provisions of the Income Tax Act, no valid notice was issued to the petitioner and thus, all further proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght Hospitality Pvt. Ltd. was under Sections 147 and 148. Hence, he urged that despite the fact that the notice is of a jurisdictional nature for reopening an assessment, this Court did not find any infirmity in the decision of the Delhi High Court holding that the issuance of a notice to an erstwhile private limited company which had since been dissolved was only a mistake curable under Section 292B. A close reading of the order of this Court dated 6 April 2018, however indicates that what weighed in the dismissal of the Special Leave Petition were the peculiar facts of the case. Those facts have been noted above. What had weighed with the Delhi High Court was that though the notice to reopen had been issued in the name of the erstwhile entity, all the material on record including the tax evasion report suggested that there was no manner of doubt that the notice was always intended to be issued to the successor entity. Hence, while dismissing the Special Leave Petition this Court observed that it was the peculiar facts of the case which led the court to accept the finding that the wrong name given in the notice was merely a technical error which could be corrected under Section 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section in respect of the income of such business or profession for the previous year in which the succession took place up to the date of succession or for the previous year preceding that year, assesseed on the predecessor, cannot be recovered from him, the 99[Assessing] Officer shall record a finding to that effect and the sum payable by the predecessor shall thereafter be payable by and recoverable from the successor and the successor shall be entitled to recover from the predecessor any sum so paid. (4) Where any business or profession carried on by a Hindu undivided family is succeeded to, and simultaneously with the succession or after the succession there has been a partition of the joint family property between the members or groups of members, the tax due in respect of the income of the business or profession succeeded to, up to the date of succession, shall be assesseed and recovered in the manner provided in section 171, but without prejudice to the provisions of this section. Explanation.-For the purposes of this section, income includes any gain accruing from the transfer, in any manner whatsoever, of the business or profession as a result of the succession . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the competent authorities, again they sent the proceedings to a non-existing person and therefore, the very initiation and continuance in the name of a non-existing person is invalid. The notice itself would reveal that the Company addressed was not existing on the date of issuance and during the year 2015, the Company was named as M/s.Vedanta Limited. 6.The learned Senior Counsel reiterated, by stating that once the notice issued under Section 148 of the Income Tax Act is invalid in eye of law, then all further proceedings consequentially became invalid. Since, in the present case, the notice itself is not valid with reference to the provisions of the Income Tax Act, as it was communicated to a non-existing person and even after the communication of the petitioner, the mistake was not corrected as such a mistake is substantive, the error cannot be fit in with the provisions of Section 292 B of the Act. The scope of Section 292 B of the Act is to be confined only to correct the mistakes. However, in the present case, the notice was issued addressing to a non-existing person and the petitioner is no way connected with the notice and therefore, such a substantive error committed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case on hand. If a notice was issued to an erst-while Company, the subsequent Company which has taken over the Company can be made liable and in the present case, the point raised is that the notice impugned was issued to a non-existing person and therefore, application of Section 170 is improper. 9.Considering the arguments as advanced by the respective learned Senior Counsel for the petitioner and the learned Senior Standing Counsel for the respondent, this Court is of the considered opinion that the purpose and object of the Act plays a pivotal role in the matter of interpreting certain provisions of the Income Tax Act. Mere procedural mistakes which is corrected or errors, which all are rectifiable, cannot be a ground to vitiate the entire proceedings which would undoubtedly and certainly defeat the very purpose and object of the Taxation law. Let us now consider the scope of Section 292 B, which contemplates Return of Income, etc., not to be invalid on certain grounds. The very provision is intended to validate the Return of Income, etc., wherein certain mistakes or errors are committed. The Section stipulates No Return of Income, assessment, noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he address of the petitioner Company. However, as rightly pointed out by the respondent, the Personal Account Number was one and the same. The Personal Account Number was accepted by the petitioner Company. They have responded to all those letters and the corrigendum was issued and finally, the Assessing Officer found that due to the frequent change, the department also committed certain mistakes in addressing the petitioner and finally, it was corrected and proceedings were continued. In letter dated 06.08.2015, the Deputy Commissioner of Income Tax has considered all these mistakes and made a finding that the name of the Company changed many times, but Permanent Account Number issued has not been changed and the same is admitted by the petitioner. On merger, it is the responsibility of the new Company to address any tax arrears or other litigation existing in the name of the previous Company. The taxation department and the authorized signatory of the Company would be well aware of the facts that it is their Personal Account Number and the name of the addressee as per Personal Account Number is M/s.Sterlite Industries (India) Limited. As the assessee has changed the name of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act. If the notice was communicated to an unknown person, who is alien to the assessee, then as rightly pointed out, the benefit of Section 292 B cannot be held in favour of the revenue. However, if the notice was intended to be issued to a person to whom it is to be issued and such person also acknowledged the Permanent Account Number, which is rightly mentioned, and responded to the letters and notices issued by the Income Tax Department, then there is no reason to disbelieve the contentions raised on behalf of the revenue, as the name mentioned wrongly is a mistake to be fit in with the provisions of Section 292 B of the Income Tax Act. 11.It is a settled principle that non-quoting of provision or mistake/error in address of a person to whom it is to be served, would not vitiate the entire proceedings in the eye of law. This being the settled principles, the nature of mistake committed as well as other mitigating factors, are to be taken into consideration for the purpose of considering the ground raised by the petitioner. 12.With reference to the judgment of the Hon'ble Supreme Court of India, relied on by the petitioner, in the case of Principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the parties that the assessment order was passed by following the procedures contemplated. Therefore, the principles laid down by the Hon'ble Supreme Court in the case cited supra may not have any direct application with reference to certain facts which all are specifically established in the present case. Even the Hon'ble Apex Court in clear terms held that the application of Section 170 or 292 B must be applied with reference to the facts and circumstances of each case and therefore, the mistake whether can be fit in with the provisions or not is to be considered on facts. 14.This Court is of the considered opinion that, in the present case, the proceedings were continued and the assessment order has already been passed and subsequently, the Writ Petitions are filled, challenging the draft assessment order as well as the final assessment order. In view of the fact that the mistake crept in at the initial stage was identified by the department and subsequently corrected and the proceedings thereafter were continued in the name of the petitioner, there is no reason to interfere with the process of reassessment already completed and it is for the petitioner to redress ..... X X X X Extracts X X X X X X X X Extracts X X X X
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