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MANMOHAN, DINESH KUMAR SHARMA
Jindal Exports And Imports Private Limited – Appellant
Versus
Deputy Commissioner Of Income Tax – Respondent
JUDGMENT
Manmohan, J. (Oral). - Present writ petitions have been filed challenging the reassessment notices dated 27th March, 2021 and 28th March, 2021 issued under Section 148 of the Income Tax Act, 1961 ['the Act'] for the assessment years 201415 and 2015-16 as well as the assessment orders dated 30th March, 2022 passed under Section 147 read with Section 143(3) of the Act.
2. Learned counsel for the Petitioner states that the impugned notices as well as the orders are void ab initio as they have been issued in the name of 'Jindal Menthol & Investment Pvt. Ltd.', a non-existing entity as it had merged with the Petitioner company with effect from 1st April, 2013 vide order dated 6th August, 2014 passed by this court under Section 394 of the Companies Act, 1956. He relies on the decision of the Supreme Court in Pr. Commissioner of Income Tax v. Maruti Suzuki India Limited, (2019) 416 ITR 613 (SC) wherein it has been held that the issuance of a notice to the non-existing company is a substantive illegality and not a procedural violation.
3. Learned counsel for the Petitioner states that the income, alleged to have escaped assessment, has been offered to tax in the hands of the amalgama
Violation of the principle of natural justice in assessment proceedings warrants setting aside the assessment orders and remanding the matter for fresh adjudication.
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.
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.
Violation of the principle of natural justice in the assessment process warrants setting aside the assessment order and remanding the matter for a decision in accordance with law.
Assessments against non-existent entities are void ab initio, requiring proper jurisdictional review by assessing officers.
Reassessment proceedings are invalid if initiated against a non-existent entity and without considering the taxpayer's response, breaching principles of natural justice.
The central legal point established in the judgment is that issuing a notice and passing an order of assessment in the name of a non-existent entity, despite knowledge of its amalgamation, renders th....
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....
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