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

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.

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).

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

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.