CONFIRM REALBUILD(P)LTD,KOLKATA vs. ITO, WARD 6(1), KOLKATA

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ITA 1036/KOL/2023Status: DisposedITAT Kolkata29 November 2023AY 2012-133 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that an assessment framed on a non-existent entity after amalgamation is not sustainable in law. The assessment order was quashed based on the Supreme Court's decision in Maruti Suzuki India Ltd.

What were the facts?

The assessee company had amalgamated with another company prior to the assessment proceedings. The Assessing Officer proceeded with the assessment despite being informed of the amalgamation and issuing notice after the amalgamation date.

What were the issues?

The primary issue was the validity of an assessment order passed against a company that had already amalgamated and ceased to exist.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 250

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “B” BENCH KOLKATA

Before: Shri Sanjay Garg & Shri Girish Agrawal

order : November 29, 2023 आदेश / ORDER संजय गग�, �या�यकसद�य�वारा/ Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 19.12.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

2.

The assessee in this appeal apart from contesting the addition made by the Assessing Officer on account of loss claimed of Rs.75,61,666/- treating the share transaction entered by the assessee Assessment Year: 2012-13 Confirm Realbuild Pvt. Ltd as bogus, has, inter alia, contested the very validity of the assessment order, the same being framed on a non-existent entity.

3.

The plea of the ld. AR is that the assessee company stood amalgamated with M/s Lookline Tradelinks Pvt. Ltd. vide National Company Law Tribunal order dated 24.04.2019. The factum of the aforesaid amalgamation was also conveyed to the Assessing Officer vide letter dated 01.07.2019, copy of which has been placed on file at page 60 of the paper-book which was duly received in the office of the Assessing Officer vide acknowledgement/seal dated 13.08.2019. However, despite the aforesaid factum of amalgamation of the assessee company brought into the knowledge of the Assessing Officer, the Assessing Officer issued notice u/s 143(2) of the Act dated 22.08.2019 for proceeding with the assessment proceedings, which was after the date of amalgamation of the assessee company in the month of April 2019 and even after the factum of amalgamation brought to the knowledge of the Assessing Officer vide letter dated 01.07.2019 received in the office of the Assessing Officer vide acknowledgement/seal and signature dated 13.08.2019. The issue is squarely covered by the decision of the Hon’ble Supreme Court in the case of PCIT vs. Maruti Suzuki India Ltd. reported in 416 ITR 613 (SC).

4.

The ld. DR could not rebut the aforesaid legal position and has simply relied upon the order of the Assessing Officer.

5.

In view of the above, as per law laid down by the Hon’ble Supreme Court in the case of Maruti Suzuki India Ltd. (supra), the assessment framed by the Assessing Officer on a non-existent company is not sustainable and the same is hereby quashed.

Assessment Year: 2012-13 Confirm Realbuild Pvt. Ltd

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