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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Baxter India Pvt. Ltd. Gambro India Pvt. Ltd. – Appellant
Versus
Additional/Joint/Deputy/Assistant Comm. of Income Tax – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order and notice. (Para 1) |
| 2. non-existent entity cannot be assessed. (Para 2 , 3) |
| 3. respondents rely on recent supreme court ruling. (Para 4 , 5) |
| 4. jurisdiction issue requires reassessment. (Para 6) |
| 5. writ petition disposed of with directions. (Para 7) |
JUDGMENT
Manmohan, J. (Oral)--Present writ petition has been filed challenging the impugned assessment order dated 31st March, 2022 passed for the Assessment Year 2016-17 under Section 147 read with Sections 144 & 144B of the Income Tax Act, 1961 (for short `Act') as well as demand notice dated 31st March, 2022 issued under Section 156 imposing a demand of Rs.8,58,76,140/-.
2. Learned counsel for the Petitioner states that notice has been issued by a non-jurisdictional assessing officer to a non-existent entity. He states that the Respondent No.2 (the then jurisdictional Assessing Officer) was duly intimated much before he wrongfully initiated the impugned reassessment proceedings that Gambro India Private Limited has merged with Petitioner with effect from 01st April, 2015 and therefore stands dissolved. He states that the present case is squarely covered by the decision of the Supreme Cou
Assessments against non-existent entities are void ab initio, requiring proper jurisdictional review by assessing officers.
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.
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....
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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