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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
B. P. COLABAWALLA, AMIT S. JAMSANDEKAR
Erangal Comtrade and Consultancy LLP – Appellant
Versus
Assistant Commissioner of Income Tax, Circle 2(1) (1) – Respondent
| Table of Content |
|---|
| 1. challenge concerning reassessment notice for non-existent entity (Para 2 , 4 , 5 , 6 , 7 , 8 , 10 , 11) |
| 2. legitimacy of the assessment order and objections (Para 3 , 12 , 17) |
| 3. judicial precedent on reassessment against non-existent entities (Para 13 , 14 , 15) |
| 4. quashing of notice and assessment order (Para 16 , 19) |
| 5. final orders and directives from the court (Para 18 , 20 , 21) |
JUDGMENT :
B. P. Colabawalla, J.
1. Rule. Respondents waive service. With the consent parties, Rule made returnable forthwith and heard finally.
2. The present Petition challenges the notice dated 30th March 2021 issued under section 148 of the Income Tax Act, 1961 [“IT Act”]. This notice was issued to a company called “Erangal Comtrade and Consultancy Private Limited” [hereinafter referred to as the “erstwhile company”], which ceased to exist with effect from 17th March 2016 after its conversion into the Petitioner LLP [Erangal Comtrade and Consultancy LLP]. The impugned notice issued under section 148 seeks to reassess the income of the erstwhile company for A. Y. 2017-18. After the issuance of the section 148 notice, a draft assessment order dated 29th March 2022, and a final assessment
A notice under section 148 issued to a non-existent entity is invalid, leading to the quashing of both the notice and the subsequent assessment order.
Reassessment notice issued to company after conversion to LLP, rendering it non-existent, is invalid; consequent proceedings void ab initio. Unchallenged jurisdictional defect by lower authority atta....
Notices issued under Section 148 of the Income Tax Act against non-existing companies post-amalgamation are invalid and without jurisdiction.
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 under Section 148 of the Income Tax Act cannot be issued to a non-existent entity following an amalgamation, as such actions lack legal jurisdiction.
A notice under Section 148 of the Income Tax Act is invalid if issued against a non-existent entity, confirming the need for valid recognition of a company's status post-amalgamation.
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....
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