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SONIA GOKANI, SANDEEP N. BHATT
Kunvarji Fincorp Private Limited – Appellant
Versus
Deputy Commissioner Of Income Tax Circle 2(1)(1), Ahmedabad – Respondent
ORDER :
SONIA GOKANI, J.
1. Draft amendment is permitted in cause-title and Paragraphs-2.5 & 3.2 of Special Civil Application No.935 of 2022 where instead of ‘successor to Kaizen Fincorp Private Limited’, it should be ‘successor to Kaizen Stocktrade Private Limited’.
Fresh copy of the same shall be brought on record.
2. This group of petitions are preferred, which involve identical question of law and facts, and therefore, are being decided by a common order.
3. The challenge is to the notice issued under Section-148 of the Income Tax Act by the respondent no.1.
4. The facts had drawn from Special Civil Application No.935 of 2022.
4.1 The petitioner is a limited company. The two companies namely Kaizen Stocktrade Pvt. Ltd. and Kaizen Finstock Pvt. Ltd. were amalgamated into the petitioner company by order dated 05.08.2016 passed in Company Petition No.235 of 2016 in Company Application No.221 of 2016.
4.2 The petitioner for the A.Y.2016-17 filed a return. Case was picked-up for re-assessment and a notice under Section 142(1) was issued on 22.02.2018, which has been replied by the petitioner on 20.03.2018.
4.3 It is averred by the petitioner that on 04.12.2018, the assessment order under Sec
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.
Notices issued under Section 148 of the Income Tax Act against non-existing companies post-amalgamation are invalid and without jurisdiction.
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.
The assessment framed by the Assessing Officer on a non-existent company is a nullity in the eyes of law and void, and the provisions of section 292B cannot rescue the department.
![City Corporation Limited Vs Assistant Commissioner Of ] Income Tax Circle 1(1), Pune - 2025 Supreme(Bom) 143](https://supremetoday-s3.b-cdn.net/Bombay_3.png)
Issuing a notice under Section 148 of the Income Tax Act to a non-existent entity post-merger constitutes a substantive illegality and cannot be rectified as a mere procedural error.
The main legal point established in the judgment is that the existence of the transferor company merged into the transferee company from the appointed date under the scheme of amalgamation, and mere ....
Proceedings against a dissolved company are void and cannot be sustained under the Central Goods and Services Tax Act.
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