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RAJIV SHAKDHER, TARA VITASTA GANJU
Commissioner of Income Tax – Appellant
Versus
Sony Mobile Communications Ind Pvt. Ltd. (Now Merged With Sony India Pvt. Ltd. ) – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
1. This appeal is directed against the order dated 06.07.2018 passed by the Income Tax Appellate Tribunal [in short "Tribunal"] concerning Assessment Year (AY) 2010-2011.
2. This appeal has a chequered history, inasmuch as it has been placed before us, on account of a difference of opinion in the coordinate bench which was constituted at the relevant point in time. It is evident from a perusal of the order dated 18.05.2021, passed by a bench comprising Hon'ble Mr Justice Rajiv Sahai Endlaw [as he then was] and Hon'ble Mr Justice Sanjeev Narula, that two issues were being considered when the said order was passed:
(i) First, as to whether the Tribunal had rightly entertained the additional ground raised before it? The additional ground concerned the jurisdiction of the AO in having the assessment order framed against a company, which was not in existence.
(ii) Second, whether this was a case, in which a substantial question of law arose, having regard to the judgment rendered by the Supreme Court in Principal Commissioner of Income Tax, New Delhi vs. Maruti Suzuki India Ltd., (2019) 416 ITR 613 (SC).
Assessments made under Section 153A against non-existent entities are void ab initio, confirming jurisdictional deficiencies invalidate the assessment process.
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.
Assessment orders based on non-existent entities are void and not merely procedural irregularities; jurisdictional issues must be addressed to ensure tax law consistency.
Proceedings against a dissolved company are void and cannot be sustained under the Central Goods and Services Tax Act.
Amalgamation of company – An assessment can always be made and is supposed to be made on Transferee Company taking into account income of both Transferor and Transferee Company.
Assessment orders against non-existing entities post-amalgamation are void ab initio, necessitating assessments in the name of the amalgamated company.
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