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MANMOHAN, DINESH KUMAR SHARMA
Kapoor Industries Limited – Appellant
Versus
Deputy Commissioner Of Income Tax – Respondent
JUDGMENT
Manmohan, J. - CM aPPL.19914/2022 (exemption) in W.P.(C) 6555/2022
CM aPPL.19927/2022 (exemption) in W.P.(C) 6559/2022
CM aPPL.19930/2022 (exemption) in W.P.(C) 6560/2022
Exemptions allowed subject to all just exceptions.
accordingly, the applications stand disposed of.
W.P.(C) 6555/2022 & CM aPPL.19913/2022
W.P.(C) 6559/2022 & CM aPPL.19926/2022
W.P.(C) 6560/2022& CM aPPL.19929/2022
1. Present writ petitions have been filed challenging the reassessment notices dated 30th March, 2021 issued by Respondent No. 2 under Section 148 of the Income Tax act, 1961 ['the act'] for the assessment years 2015- 16, 2016-17 & 2017-18 as well as the assessment orders dated 31st March, 2022 passed under Section 147 read with Section 143(3) of the act.
2. Mr.ajay Vohra, learned senior counsel for the petitioner states that the impugned notices are void ab initio as they have been issued in the name of a non-existing partnership firm i.e. "M/s Kapoor Industries'. He states that the erstwhile partnership firm was converted into a limited company in terms of Part IX of the Companies act, 1956 with
The central legal point established in the judgment is the requirement to adhere to the principle of natural justice in assessment proceedings under the Income Tax Act, particularly when dealing with....
Reassessment notices issued in the name of a non-existent entity are void ab initio, and failure to adhere to natural justice principles mandates the setting aside of such orders.
Notices issued under tax laws to a nonexistent entity are invalid; transactions must be correctly accounted for by the current entity.
Assessment orders issued against non-existent entities are void ab initio, and authorities must respect the legal status of the entities involved.
The impugned order and notice under Section 148 and 148A(d) of the Income Tax Act, issued against a non-extant entity, cannot be complied with, and were therefore set aside.
Notices issued in the name of a dissolved partnership firm are invalid, reaffirming the necessity for proper jurisdiction in tax assessments.
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.
Issuance of a notice to a non-existing entity constitutes a substantive illegality, and failure to provide an opportunity for hearing violates natural justice principles.
Violation of the principle of natural justice in assessment proceedings warrants setting aside the assessment orders and remanding the matter for fresh adjudication.
A reassessment order is invalid if it violates natural justice by failing to provide a party the opportunity to respond to a notice before its compliance deadline.
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