COMPASS INDIA FOOD SERVICES PRIVATE LIMITED ,GURUGRAM vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), GURGAON, GURUGRAM

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ITA 7907/DEL/2025Status: DisposedITAT Delhi29 June 2026AY 2017-183 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 in the hands of a non-existent entity, due to a prior merger, is not sustainable in law. Therefore, the assessment order is quashed.

What were the facts?

The assessment year in question is 2017-18. The assessment was framed by the Assessing Officer in the name of M/s. Ultimate Hospitality Services Pvt. Ltd., which was a predecessor entity that had merged with effect from 01.04.2012.

What were the issues?

The primary issue was the validity of an assessment framed against a merged entity that no longer existed as a separate legal entity.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 13.05.2026Pronounced: 13.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.7907/Del/2025 Assessment Year: 2017-18 M/s. Compass India Food Vs. DCIT, Services Pvt. Ltd., Circle-1(1), 426, 4th Floor, Tower A, Gurgaon Spaze I Tech Park, Sector 49, Sohna Road, Gurgaon PAN: AADCC9070A (Appellant) (Respondent) Assessee by Sh. Kashish Gupta, CA Department by Ms. Ankush Kalra, Sr. DR

Date of hearing 13.05.2026 Date of pronouncement 13.05.2026 ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1081286426(1), dated 29.09.2025 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

ITA No.7907/Del/2025

Heard both the parties. Case file perused. 2. It emerges at the outset during the course of hearing that there arises the first and foremost legal issue of validity of the learned Assessing Officer’s assessment itself framed in the name of M/s. Ultimate Hospitality Services Pvt. Ltd. i.e. the assessee’s predecessor in interest which got merged w.e.f. 01.04.2012 as per hon’ble Madras high court’s order/judgment approving the amalgamation scheme on 22.07.2013 u/s 351 & 354 of the Companies Act. There is no denial coming from the Revenue side that the learned Assessing Officer appears to have initiated section 148 proceedings against the above de-merged entity only followed by his assessment in the very name. That being the clinching factual position, we hereby quote PCIT Vs. Maruti Suzuki (2019) 416 ITR 613 (SC) that such an assessment framed in a non-existent entity’s hands is not sustainable in law. The same stands quashed in very terms therefore. All other remaining pleadings between the parties on merits stand rendered academic. 3. This assessee’s appeal is allowed. Order pronounced in the open court on 13th May, 2026

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ITA No.7907/Del/2025

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th June, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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