Assessment proceedings initiated by issuing notices under Section 148 of the Income Tax Act in the name of a non-existent (amalgamated) entity are void ab initio and constitute a substantive illegality, not a mere procedural irregularity.

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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH ‘A’: NEW DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER

AND

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER

ITA Nos.-586 & 587/Del/2026

(ASSESSMENT YEARs -2013-14 & 2014-15)

Surya Medi Tech Ltd. DCIT/ACIT

205, 2nd Floor, Gali No.3 Central Circle

Naiwala, Karol Bagh Vs IInd Floor, Noida

Central Delhi Uttar Pradesh-201301

Delhi-110005

PAN: AALCS3282L

Assessee Revenue

Assessee by Shri Rohit Kapoor, Adv. &

Shri Virsain Agarwal, Adv.

Revenue by Shri Akhilesh Yadav, Sr. Dr

Date of Hearing 10.02.2026

Date of Pronouncement 03.03.2026

ORDER

PER MANISH AGARWAL, AM,

Both captioned appeals are filed by the assessee against

the common order of the ld. Commissioner of Income Tax

(Appeals)-3, Noida [“ld. CIT(A)”], both dated 07/11/2025 in

appeal No. CIT(A), Noida-3/10004/12-13 & 10009/13-14 for

Assessment Years 2013-14 & 2014-15 respectively, passed

under section 250 of the Income Tax Act, 1961 (hereinafter

referred as ‘the Act’) arising out of the assessment order passed

u/s 143(3) r.w.s. 147 of the Act, both dt. 26.05.2023.

2. Since both the appeals are having common grounds

therefore, they are taken together and decided by a common

order.

2 ITA No.586 & 587/Del/2026

3. At the outset it is observed that the assessee in Ground of

appeal No. 3 has challenged the action of the AO in completing

the assessment in the name of non-existent entity.

4. Before us, ld. AR for the assessee submits that the assessee

in terms of the order of Hon’ble National Company Law Tribunal,

Allahabad Bench Dated 21.03 .2018 stood amalgamated with its

holding company namely M/s Ace Infracity Developers Pvt. Ltd.

and the notices u/s 148 of the Act were issued for both the

assessment years on 27.07.2022, in the name of erstwhile

company which is a non-existent entity. The ld. AR further

stated that necessary intimation was sent to the AO in terms of

letter dated 23.04.2018 filed on 08.05.2018, placed before us.

Further order of amalgamation was duly filed before the

Registrar of Companies, Kanpur and was taken on record on

19.04.2018 and the company master data as per MCA records

reflects the status of the assessee as “Amalgamated” which fact

was within the knowledge of department. It is thus prayed that

the reassessment proceedings initiated by issue of notices under

section 148 of the Act in the name of erstwhile company are bad

in law the consequent reassessment orders passed for both the

assessment years deserves to be quashed.

5. For this, reliance is placed on various judgements

including the judgement of Hon’ble Supreme Court in the case

of PCIT Vs. Maruti Suzuki India Ltd. reported in 107

Taxmann.com 375 (SC).

3 ITA No.586 & 587/Del/2026

6. Per contra, the Ld. Sr. DR for the Revenue vehemently

supported the order of the AO and submitted that the assessee

has failed to appear before the AO and also before ld. CIT(A),

therefore, the case of the assessee should be sent back to the file

of the AO or ld. CIT(A) for fresh adjudication. He prayed

accordingly.

7. Heard both the parties at length and perused the material

available on record. Section 170 of the Income-tax Act deals with

the succession to the business otherwise than on death. It reads

as under-

170. “Succession to business otherwise than on death.-

(1) Where a person carrying on any business or profession

(such person hereinafter in this section being referred to as

the predecessor) has been succeeded therein by any other

person (hereinafter in