TMI Blog2023 (5) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(3), New Delhi (hereinafter referred as the Ld. AO). 2. Heard and perused the record. 3. The assessee has come in appeal raising following grounds :- 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad, both in the eye of law and on the facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that the initiation of the proceedings under Section 147, read with Section 148, is bad and liable to be quashed as the condition and procedure prescribed under the statute have not been satisfied and complied with. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the reassessment proceedings initiated by the learned A.O. are bad in the eye of law as the reasons recorded for the issue of notice under Section 148 are bad in the eye of law and are contrary to the facts. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... back of the assessee without providing copy of the same providing opportunity to rebut the same. 11. (i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 1,75,110/- made by the AO on account of commission of 2%. (ii) That the commission was added @ 2% without there being any basis for the same. 12. The appellant craves leave to add, amend or alter any of the grounds of appeal. 3. Thereafter assessee has raised the following additional grounds :- 13. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the order passed by the AO u/s 147/143(3), despite the fact that the same being passed in the name of a non-existent entity, is illegal and void ab-initio. 14. On the circumstances and facts of the case, the reassessment framed in the name of M/s Rathi Ceramics Pvt. Ltd. which had since amalgamated with M/s DBG Leasing and Housing Ltd. and had ceased to exist in the eye of law, was non-est. 4. At the time of hearing ld. Counsel had stressed that the additional grounds primarily arise from questions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 19.11.2019 (ITAT Mumbai) 13. Saurabh Overseas Pvt. Ltd. vs. ITO, ITA No. 6138/Del/2016, A.Y. 2006-07 (ITAT Delhi) 14. Savera Marketing Pvt. Ltd. vs. ITO, ITA No. 6139/Del./2016, A.Y. 2006-07 (ITAT Delhi) 5. Ld. DR however relied judgment of Hon ble Delhi High Court in PCIT Verus Mahagun Realtors (P) Ltd. (2022) 443 ITR194(SC) to contend that Hon ble Supreme Court has upheld the validity of Assessment Order passed in the name of amalgamating company. 6. As the additional grounds arise out of question of law same are taken on record. Since this Bench is first dealing with question of law alone arising out of additional grounds it will be appropriate to cite the relevant law here itself. Similar issue has came up in the case of group company M/s Saurabh Overseas Pvt. Ltd. (Now merged with DBG Leasing and Housing Ltd.) bearing ITA No. 6138/Del/2016 - AY 2006-07 before Coordinate Bench in which on the similar set of facts, Bench vide order dated. 11.05.2022 has decided the appeal in favour of the assessee. Relevant findings are as under: 7. We have heard the parties and perused the material on record and gave our thoughtful consideration. M/s Saurabh Over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t intimate the fact of amalgamation prior to the issue of the assessment order and also Assessee itself undertook various compliances such as furnishing of tax returns, correspondences with the Tax Authority, filing of appeal before appellate authorities etc. in the name of the amalgamating company, which had ceased to exist. 8. In the light of aforesaid proposition of law while taking into consideration the matter on record in the present case, it can be observed that the appellant company merged with M/s.DBG Leasing and Housing Ltd. vide order dated 21.01.2011 of Hon ble Delhi High Court, available at page no. 1 to 35 of the paper book. Ld. AO was informed of this merger on 18.06.2011 through letter filed before Ld. AO, placed at page no. 36 of the paper book. It will be beneficial to reproduce the substance and content of this letter dated June 18, 2011 as under :- To, Date : June 18, 2011 THE ASSESSING OFFICER, Income Tax Department, Vikash Bhawan, IP ESTATE, Delhi-110002. Ward Number 15(3) Sub : Cancellation of Permanent Account Number-AAAPR4592F Sir, This is to inform you that pursuant to the order of the Honorable high ..... X X X X Extracts X X X X X X X X Extracts X X X X
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