Assessment against Non-Existent Entity is Void: ITAT [Read Order]

Revisional Assessment - CIT

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessment against a non- existent entity is not valid under the Income Tax Act, 1961.

In the instant case, the assessee- Company amalgamated with other companies, namely, M/s. SUCON INDIA LIMITED. The Assessing Officer framed an assessment order against the assessee.

Before the Tribunal, the assessee submitted that the AO has passed the impugned assessment order by assuming jurisdiction on an entity i.e. assessee company, which did not exist on the date of framing of such assessment. According to the assessee, as such the jurisdiction assumed and assessment order made on the dead person/amalgamated company, makes the assessment order a nullity and void ab initio.

The Tribunal observed that the issue whether it can be made on non-existent entity/dead person as in the present case, is squarely covered by the decision of co-ordinate Bench in the case of assessee itself for A.Y. 2013-14 wherein the Tribunal in the identical facts and circumstances has decided the issue in favor of the assessee.

“Respectfully following the above decision of C0-ordinate Bench in the attending facts and circumstances of the case, we are of the opinion that order passed by the Assessing Officer is a nullity, having been passed against the non-existent entity,” the Tribunal said.

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