USHA MARTIN LTD.(SUCCESSOR TO USHA MARTIN HOLDINGS LTD. CONSEQUENT TO AMALGAMATION),KOLKATA vs. D.C.I.T,CIRCLE-8, KOLKATA

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ITA 1969/KOL/2019Status: DisposedITAT Kolkata31 December 2019AY 2005-067 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 name of a non-existent entity is a nullity, following the Supreme Court's decision in PCIT vs Maruti Suzuki India Ltd. Therefore, the impugned assessment was quashed.

What were the facts?

The Assessing Officer framed a regular assessment on a company that had already merged with another entity. The assessee had informed the Assessing Officer about the amalgamation prior to the assessment.

What were the issues?

Whether an assessment framed in the name of a non-existent entity after amalgamation is a nullity and curable under Section 292BB of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 292BB

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, “SMC”, BENCH KOLKATA

Before: SHRI S. S. GODARA, JM

For Appellant: Shri Aakash Agarwal, Advocate
Hearing: 23/12/2019Pronounced: 31/12/2019

Appellant by : Shri Aakash Agarwal, Advocate Respondent by : Shri Jayanta Khanra, JCIT, Sr. DR सुनवाईक�तार�ख/ Date of Hearing : 23/12/2019 घोषणाक�तार�ख/Date of Pronouncement : 31/12/2019 आदेश / O R D E R This assessee’s appeal for assessment year 2005-06 arises against the Commissioner of Income Tax (A)-3, Kolkata dated 27.02.2019 passed in case no. CIT(A), Kolkata-3/10078/2008-09 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case files perused.

2.

It is noted at the outset that the instant lis involves legal issue of framing of a regular assessment dated 20.11.2007 in the name of the original assessee; M/s. Usha Martin Holdings Ltd. despite the fact that it had merged with the successor entity M/s. Usha Martin Ltd. Relevant amalgamation scheme stood approved in hon’ble jurisdictional high court on 04.05.2006 w.e.f. 01.04.2005. The assessee had apprised the Assessing Officer about all these developments on 23.08.2007. It also raised an additional ground to this effect before the CIT(A). The same stands declined as follows:

3.

It is therefore clear that there is no dispute at least on facts that the Assessing Officer has indeed framed the regular assessment on a non existent entity only. The CIT(A) has quoted section 292BB of the Act that such a defect is curable. We find that hon’ble apex court latest judgement in PCIT vs Maruti Suzuki India Ltd. (2019) 107 taxmann.com 375 (SC) has settled the law that such an assessment framed in case of a non-existent entity is a nullity. Their lordships have also considered M/s. Skylight Hospitality Pvt. Ltd. (supra) as well as section 292BB of the Act. I go by the very reasoning mutatis mutandis to quash the impugned assessment. Ordered accordingly. All other pleadings on merits are rendered academic.

Usha Martin Ltd. 5. This assessee’s appeal is allowed.

Order is pronounced in the open court on 31.12.2019.

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