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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S.Sonak, Jitendra Jain, JJ.
City Corporation Limited – Appellant
Versus
Assistant Commissioner Of ] Income Tax Circle 1(1), Pune – Respondent
JUDGMENT :
M.S. Sonak, J.
1. Heard learned counsel for the parties.
2. Rule in each of these Petitions. The rule is made returnable immediately at the request of and with the consent of learned counsel for the parties.
3. The learned counsel for the parties agree that all these Petitions can be disposed by a common order since they involve substantially common issues of law and fact. The learned counsel also agree that Writ Petition No.6076 of 2023 be treated as lead Petition.
4. Writ Petition No.6076 of 2023 concerns Assessment Year 2013-14. The remaining Writ Petitions are concerned with Assessment Years 2014-15, 2016-17, 2017-18, 2018-19 and2019-20 respectively.
5. All these Petitions are instituted by “City Corporation Limited” [CCL], which is engaged in constructing and developing infrastructure facilities. In terms of the NCLT’s order dated 27 April 2020, the CCL got merged with its wholly owned subsidiary “Amanora Future Tower Pvt. Ltd.”(AFTPL), with effect from 01 April 2018.
6. By communication dated 27 April 2020, the Petitioner informed the Income Tax Authority of the merger effective 01 April 2018. This intimation dated 27 August 2020 is at Exhibit-B (page 34 of the paper book
Issuing a notice under Section 148 of the Income Tax Act to a non-existent entity post-merger constitutes a substantive illegality and cannot be rectified as a mere procedural error.
An assessment notice issued against a non-existing entity post-amalgamation is void ab initio, reinforcing the principle that an amalgamated company ceases to exist legally.
Notices issued under Section 148 of the Income Tax Act against non-existing companies post-amalgamation are invalid and without jurisdiction.
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 a....
The assessment framed by the Assessing Officer on a non-existent company is a nullity in the eyes of law and void, and the provisions of section 292B cannot rescue the department.
Proceedings against a dissolved company are void and cannot be sustained under the Central Goods and Services Tax Act.
An assessment order issued against a non-existent entity due to amalgamation is fundamentally flawed and cannot be rectified under Sections 154 or 292B of the Income Tax Act.
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