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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Sumant Investments Private Limited – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
| Table of Content |
|---|
| 1. challenges order under income tax act (Para 1) |
| 2. petitioner's argument on non-existence of company (Para 2 , 3 , 4) |
| 3. acknowledgment of non-existence by respondent (Para 5 , 6 , 7) |
| 4. setting aside invalid notice and order (Para 8) |
| 5. disposition of writ petition (Para 9) |
JUDGMENT
Manmohan, J. (Oral)--Present Writ Petition has been filed challenging the Order passed under Section 148A(d) of the Income Tax Act, 1961 (`the Act') and the Notice issued under Section 148 of the Act, both dated 20th July, 2022 for the Assessment Year (`AY') 2014-15.
2. Learned Counsel for the Petitioner states that the impugned Order and notice are void ab initio as the same have been issued in the name of Sare Marketing Private Limited which was amalgamated with the Petitioner Company i.e. Sumant Investments Private Ltd. w.e.f. 1st April, 2014 vide order of this Court dated 19th September, 2014 under Section 391-394 of the Companies Act, 1956 and accordingly, the company, namely, Sare Marketing Private Limited has not been in existence since then.
3. He states that the Petitioner informed the Respondent about the status of the assessee vide several replies filed in response to noti
Notices issued under the Income Tax Act to non-existent entities due to amalgamation are void ab initio and unenforceable.
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 main legal point established in the judgment is that a notice issued under section 148 of the Income Tax Act in the name of a non-existent entity, which has undergone a scheme of amalgamation and....
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.
The impugned notice issued under section 148 of the Income Tax Act, 1961, in the name of a non-existing company due to amalgamation is not tenable in the eye of law, and the court has the authority t....
Notices issued under tax laws must be addressed to the correct legal entity, and procedural errors may invalidate such notices, requiring rectification in accordance with legal standards.
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....
Notices issued under Section 148 of the Income Tax Act against non-existing companies post-amalgamation are invalid and without jurisdiction.
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