An assessment order cannot be validly issued against a non-existent entity, and failure to consider relevant facts constitutes non-application of mind.

JUDGMENT :

(BHARGAV D. KARIA, J.)

1. Heard learned advocate Mr. S. Krishnan for learned advocate Mr. Tej Shah for the petitioner and learned Senior Standing Counsel Mr. Nikunt Raval for the respondent.

2. The petitioner-Punjab National Bank has filed this petition praying for quashing and setting aside the show cause notice dated 28.03.2021 issued under section 148 of the Income Tax Act, 1961 [for short ‘the Act’] by respondent No.1-Income Tax Officer, Ward No.1(1), Bharuch and the assessment order dated 30.03.2022 passed by respondent No.1 together with Notices dated 31.03.2022 for levy of penalty under section 274 read with section 271AAC(1), 272A(1)(d) and 271F of the Act.

3. Rule returnable forthwith. Learned advocate Mr. Nikunt Raval waives service of notice of rule for the respondent.

4. Having regard to the controversy which is involved in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.

5. Brief facts of the case are as under:

5.1 The petitioner-Bank is successor entity of erstwhile Oriental Bank of Commerce [‘OBC’ for short] which was a nationalized bank engaged in banking activities on Pan-India basis having PAN Number allotted by the respondent “AAACO0191M”.

5.2 For the Assessment Year 2009-10, when TDS returns of Regional Offices/Branches of several classes tax payers were filed by the regional offices/branches of the OBC, a PAN bearing number ‘AAACO7436M’ was obtained for TDS compliances of Bharuch Branch. At the relevant time, the said OBC Bank received a letter dated 09.08.2012 as well as notice of the same date under section 142(1) of the Act from respondent No.1 for not filing return of income for Assessment Years 2009-10 and 2010-11 which was responded by the OBC Bank by filing provisional receipts/TDS returns of said branch for the relevant period stating that only TDS returns of the said branch have been filed under the said PAN.

5.3 The OBC thereafter, again received communication dated 13.02.2013 from respondent No.1 for A.Ys. 2010-11 and 2011-12 addressed to its Bharuch Branch stating that as per the record, return of income for A.Y. 2009-10 and A.Y. 2010-11 were not filed.

5.4 In reply, OBC Bank, by letter dated 23.02.2013 clarified that under PAN “AAACO0191M”, it was duly filing returns of income regularly and being assessed at New Delhi and has already made a request for cancellation of PAN “AAACO7436M” through its head office. A specific request was also made to respondent No.1 by the said letter surrendering the said PAN alongwith screenshot of the correct PAN of the OBC being AAACO0191M.

5.5 It appears that respondent No.1 again by letter dated 22.07.2013 made inquiries for non-filing of return for Assessment Years 2010-2011 and 2011-12 in the PAN “AAACO7436M” which was already requested for cancellation by the OBC Bank.

5.6 The OBC Bank by letter dated 30.07.2013 clarified that by letter dated 23.02.2013, a request is made to cancel PAN “AAACO7436M” as regular assessment of OBC Bank was undertaken at New Delhi in its correct PAN “AAACO0191M”. Thereafter, no further proceedings were initiated by respondent No.1.

5.7 By Notification dated 04.03.2020, in the Official Gazette of India, OBC Bank stood amalgamated with the petitioner- Punjab National Bank [‘PNB’ for short] w.e.f. 1^st April,2020. Accordingly, the OBC Bank ceased to exist, and returns of income were filed by the petitioner-PNB under its PAN “AAACP0165G” being part of PNB.

5.8 It is the case of the petitioner that after lapse of Eight years after a specific request for cancellation of PAN “AAACO7436M” being made before the respondent No.1 and a year after OBC Bank ceased to exist, respondent No.1 issued the impugned Notice dated 28.03.2021 under section 148 of the Act in name of OBC Bank at Bharuch Branch seeking to reopen assessment for A.Y. 2017-18 under PAN “AAACO7436M”.

5.9 It is the case of the petitioner- PNB Bank that a notice dated 28.03.2021 as well as subsequent notices is