IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 842/Bang/2024 Assessment Years : 2014-15 The Dy. Commissioner of Income Tax, Vs. Cisco Systems (India) Pvt. Ltd., Circle – 2(1)(1), SEZ Unit, Bengaluru. Kadubeesanahalli Village, Bengaluru.

PAN – AABCC 0258 Q APPELLANT RESPONDENT Assessee by : Shri Nageswar Rao, Advocate Revenue by : Ms. Neera Malhotra, CIT (DR)

Date of hearing : 26.11.2024 Date of Pronouncement : 17.02.2025

O R D E R

PER WASEEM AHMED, ACCOUNTANT MEMBER:

This is an appeal filed by the Revenue against the order passed by the DCIT, Bengaluru dated 11/06/2024 for the assessment year

2014-15.

2. The Revenue has raised the following grounds of appeal; “The Ld. CIT(A) erred in facts and law in quashing the assessment order passed u/s 147 of the Income Tax Act, 1961, in the case of M/s Scientific Atlanta India Technology Pvt Ltd, predecessor to successor M/s Cisco Systems (India) Pvt Ltd.

The order passed by the CIT(A) is opposed to the ratio laid down in the Hon'ble Supreme Court judgement in the case of PC.IT(Central) v. Mahagdn Realtors (P) Ltd, [2022 SCC Online SC 407].”

3. The only effective issue raised by the revenue is that the learned CIT(A) erred in quashing the assessment order on the reasoning that the order was passed in the name of non-existing company.

4. The facts in brief are that the assessee, namely Scientific Atlanta India Technology Pvt Ltd. (hereafter SA India) merged with Cisco Systems (India) Pvt. Ltd. (hereafter Cisco India) w.e.f. 1^st April 2010 in a scheme of amalgamation approved by the Hon’ble Karnataka High Court vide order dated 19^th November 2010. Subsequently, the assessee vide letter 14^th February 2012 informs the office of Chief Commissioner of Income Tax (CCIT)-II Chennai about the amalgamation of SA India with Cisco India. The assessee further writes an application for transfer of record from JAO of SA India i.e. ACIT Circle-6(1) to JAO of Cisco India i.e. DCIT Circle-11(2) Bangalore. The prayer of the assessee was approved by the tax authority acknowledging the amalgamation of SA India vide order dated 5^th June 2012. Thus, the assessee namely SA India ceased to exist with effect from appointed date of amalgamation i.e. 1^st April 2010.

4.1 Subsequently, the Revenue from NMS data for F.Y. 2013-14 relevant to A.Y. 2014-15 observed that the SA India has made a payment against credit card bill for Rs. 92,38,50,600/- but has not filed any return of income for the A.Y. 2014-15. Based on the information obtained from NMS data, the JCIT (OSD) corporate circle -6(1) Chennai as on 17^th March 2021, recorded reason to believe that the income chargeable to tax has escaped assessment and, on the day, JCIT as per the provision of section 151 of the Act, has written a letter to the office of PCIT Chennai-3 for approval for issue of notice under section 148 of the Act. Thereafter, the notice under section 148 of the Act was issued by the office of ACIT corporate circle-6(1) Chennai i.e. Jurisdictional AO (JAO) dated 31^st March 2021. The assessee failed to make reply to the notice issued under section 148 of the Act and under section 142(1) of the Act issued by the JAO.

4.2 Subsequently vide order sheet date 8^th December 2021 the case was transferred from JAO to Faceless assessment center. The NFAC also issued several notices under section 142(1) of the Act which were not replied. Thus, the NFAC finally framed assessment order under section 147 r.w.s. 144 of the Act dated 25^th March 2022 in the name of SA India which was not in existent in relevant assessment year i.e. 2014-15.

4.3 The successor assessee (Cisco India) preferred an appeal before the National Faceless Appellate Center Delhi (NAFC)/learned CIT(A) and challenged the validity of assessment order framed in the name of non- existent assessee. The NAFC/learned CIT(A) vide order dated 27^th February 2024 quashed the assessment order. The relevant finding i