Assessments made under Section 153A against non-existent entities are void ab initio, confirming jurisdictional deficiencies invalidate the assessment process.

ORDER

These appeals are filed by the Assessee against different orders of the Ld. CIT(Appeals), Gurgaon for the assessment years 2008-09, 2010-11, 2011-12 & 2013-14. In all these appeals the assessee challenged the order of the Ld. CIT(Appeals) in confirming the action of the Assessing Officer in assuming the jurisdiction and issue of notice u/s 153A of the Act and the consequent assessment proceedings as bad in law and void ab initio when the entity in whose name notice u/s 153A was issued and assessment is framed did not exist. The assessee also challenged the order of the Ld. CIT(Appeals) on merits of the additions/disallowances made. Grounds of appeals are as under:

Grounds of ITA No.7430/D/2019, AY 2008-09:

1) “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O., in assuming jurisdiction and issue of notice u/s 153A of the Income Tax Act, 1961 by Ld. Assessing Officer and the consequent assessment proceedings in the case are bad in law and against the facts and circumstances of the case and the assessment framed is bad in law and against the facts and circumstances of the case and void-ab initio, more so when the entity in whose name jurisdiction u/s 153A was assumed did not exist.

2) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. the assessment framed u/s 153A of the Income Tax Act, 1961 and that too without serving mandatory notice u/s 143(2) within the statutory allowable period.

3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making addition of Rs.1,34,90,000/- on account of share capital received by the company and that too in the proceedings u/s 153 A of the Act.

4) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the addition of Rs.1,34,90,000/- is bad in law and against the facts and circumstances of the case.

5) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in charging interest u/s 234B, more so when such interest could not be levied under the law.

6) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. A.O. in passing the impugned order without giving adequate opportunity of being heard and by not observing the principles of natural justice.

7) That the appellant craves the leave to add, alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other.”

Grounds of ITA No.3618/D/2018, AY 2010-11:

1) “That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O., in assuming jurisdiction and issue of notice u/s 153A of the Act, more so when the notice was issued in the name of non-existing entity and that too without giving any opportunity of hearing.

2) That in any case and in any view of the matter, the assessment framed u/s 153A(1)(b) of the Act, is bad in law and against the facts and circumstances of the case.

3) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. A.O. in making disallowance of Rs.1,13,716/- u/s 14A of the Income Tax Act, 1961 , that too in the proceedings u/s 153A of the Act.

4) That in any case and in any view of the matter, action of Ld. CIT(A) in confirmin