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RAVINDRA MAITHANI
Delta Electronics India Pvt. Ltd. – Appellant
Versus
Principal Commissioner of Income Tax – Respondent
JUDGMENT :
RAVINDRA MAITHANI, J.
1. The challenge in this petition is made to notice under Section 148 of the Income Tax Act, 1961 (“the Income Tax Act”) dated 20.03.2023 as well as order under Section 148 A(d) of the Income Tax Act dated 20.03.2023 for re-assessment of Delta Power Solutions India Pvt. Ltd. (“DPS”) for the assessment year 2019-20.
2. Heard learned counsel for the parties and perused the record.
3. It is the case of the petitioner that DPS and petitioner’s Company, i.e. Delta Electronics India Pvt. Ltd. (DIN) proposed a scheme for amalgamation with appointed dated of 01.04.2018 (DPS being Transferor company or amalgamating company and DIN being Transferee company or amalgamated company). The amalgamation processes was approved by National Company Law Tribunal (“NCLT”) on 31.01.2019. The proposed scheme of amalgamation was also informed to the revenue by a communication dated 08.08.2018. The revenue participated in the amalgamation proceedings before the NCLT. Post approval by the NCLT, according to the petitioner, the revenue was further informed by a communication dated 15.02.2020. But, it is the case of the petitioner that the revenue issued notice dated 03.02.2020, u
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 order against a non-existent entity due to a scheme of amalgamation is not legally valid.
Amalgamation of company – An assessment can always be made and is supposed to be made on Transferee Company taking into account income of both Transferor and Transferee Company.
Proceedings against a dissolved company are void and cannot be sustained under the Central Goods and Services Tax Act.
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