The central legal point established in the judgment is that the notice issued in the name of a non-existent entity is bad in law, and human errors under Section 292B cannot nullify proceedings that are fundamentally at odds with legal principles.

JUDGMENT

K.R. Shriram, J. - Petitioner is impugning a notice no.ITBA/AST/S/148/2018- 19/1015547197(1) dated 30th March 2019 issued by respondent no.1 under Section 148 of the Income Tax Act, 1961 (the Act) for the Assessment Year 2012-2013 and the subsequent order [Letter No.ITBA/AST/F/17/2019- 20/1017795202(1)] passed on 5th September 2019 rejecting the objections raised by petitioner.

2. By a notice dated 30th March 2019 issued under Section 148 of the Act, respondent no.1 informed Niraj Realtors and Shares Pvt. Ltd. (Niraj Realtors) that he has reasons to believe that Niraj Realtors' income chargeable to tax for the Assessment Year 2012-2013 has escaped assessment within the meaning of Section 147 of the Act. Niraj Realtors was called upon to deliver a return in the prescribed form for the said Assessment Year. The reasons required to be given for re-opening under Section 148 of the Act was provided by respondent no.1 to Niraj Realtors almost six weeks later by a communication dated 17th May 2019. The reasons, opens with admission of the fact that Niraj Realtors had merged in and was known as Alok Knit Exports Pvt. Ltd. and had e-filed its return of income tax for the Assessment Year 2012-2013 on 30th September 2012.

3. On receipt of these reasons, petitioner, by its objection dated 16th June 2019 brought to the notice of respondent no.1 that the notice issued under Section 148 of the Act was bad in law as the same was issued in the name of a non-existent person. In the objection, copy whereof is at Exhibit "H" to the petition, petitioner had also listed various judicial pronouncements on which they were relying upon to make their submission that the notice issued was bad in law. Apart from that, petitioner had also raised various other objections with which we do not propose to go into at this stage because the Court felt, if the Court comes to a conclusion that the notice, that was issued under Section 148 of the Act, was bad in law, the same having been issued in the name of non-existent person, the other objections would only be academic. We should note that this objection dated 16th June 2019 has been signed and submitted by Alok Knit Exports Pvt. Ltd. (successors of Niraj Realtors). In their objections, petitioner once again brought to the notice of respondent no.1, though respondent no.1 was aware, that Niraj Realtors had merged with petitioner and for the Assessment Year 2011-2012 for re-opening of assessment of Niraj Realtors, the Assessing Officer had infact issued notice in the name of Alok Knit Exports Pvt. Ltd. A copy of the notice issued under Section 148 of the Act for the Assessment Year 2011-2012 in the name of petitioner as successors of Niraj Realtors alongwith reasons for issuing the notice under Section 148 of the Act is also annexed to the petition. Respondent no.1, however, rejected the objections raised by petitioner that the notice issued under Section 148 of the Act in the name of a non-existent person was bad in law. The reasons for rejection, for ease of reference and better understanding, are reproduced hereinbelow :

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3. The above objections are being dealt hereunder :

3.1. With regard to the notice u/s. 148 to be bad in law as the same is issued in the name of non-existent person, the year in consideration is A.Y. 2012-13 and during the said year, the name of the assessee was Niraj Realtors and Shares Pvt. Ltd. under PAN AAACN3983A and the information received is with regard to obtaining of accommodation entries by the assessee viz. M/s. Niraj Realtors and Shares Pvt. Ltd. and not M/s. Alok Knit Exports Pvt. Ltd. The assessee company had merged recently and the information is prior to the date of merger and hence the notice has been issued in the name of M/s. Niraj Realtors and Shares Pvt. Ltd. Now that the assessee company has got merged with M/s. Alok Knit Exports Pvt. Ltd., it is pertinent to mention here that with the acquisition and the corresponding due diligence, i.e., making r