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BHARGAV D. KARIA, NIRAL R. MEHTA
Singh and Ghosh Trading LLP – Appellant
Versus
Deputy Commissioner of Income Tax, Circle 2(1)(1) – Respondent
ORDER :
Niral R. Mehta, J.
1. By way of this petition under Article 226 of the Constitution of India, the petitioner has approached this Court challenging, inter-alia, the notice under Section 148 of the Income-Tax Act, 1961 (for short ‘the Act’) dated 27.3.2021 for Assessment Year 2015-16.
2. Short facts can be stated as under :
2.1 The assessee, namely, Nasa Finlease Pvt. Ltd. has been amalgamated with Singh and Ghosh Trading Pvt. Ltd. which then converted to Singh and Ghosh Trading LLP after following the prescribed procedure under the Companies Act, 1956. The Income-Tax Department was informed about the said fact vide letter dated 2.9.2015. The Department was further intimated about the factum of amalgamation vide letter dated 10.3.2017.
2.2 Despite the aforesaid, the impugned notice dated 27.3.2021 under Section 148 of the Act came to be issued in the name of Nasa Finlease Pvt. Ltd.
2.3 Pursuant to the said notice, it was informed to the respondent vide letter dated 26.4.2021 that Nasa Finlease Pvt. Ltd. has been amalgamated with the petitioner with effect from 1.4.2014 pursuant to the order of the High Court under Sections 391 to 394 of the Companies Act, 1956. It was further state
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.
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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 central legal point established in the judgment is that the notice issued in the name of a non-existent entity is bad in law, and human errors under Section 292B cannot nullify proceedings that a....
Proceedings against a dissolved company are void and cannot be sustained under the Central Goods and Services Tax Act.
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