The Income Tax Appellate Tribunal (ITAT), Mumbai Bench while quashing the order passed by the Assessing Officer (AO) held that the Assessment Order against non-existent entities would be void in eyes of law.
The assessee company, Siemens Limited which is engaged in the business of providing engineering, design, and drawing services using customized CAD tools that help the AEs in planning, designing and setting-up power plants worldwide had e-filed its return of income declaring its total income. Subsequently, the assessee revised its return of income.
The return of income filed by the assessee was processed as such under section 143(1) of the Act. Thereafter, the case of the assessee was selected for scrutiny assessment and a notice under section 143(2) was issued and duly served on the assessee.
The assessee submitted that the AO vide a letter intimated of the fact that the assessee, M/s Siemens Power Engineering Pvt. Ltd pursuant to the orders of the High Court of Punjab & Haryana and that of the High Court of Bombay issued under Section 391 to Section 394 of the Companies Act, 1956, was amalgamated with M/s Siemens Limited.
The Tribunal consists of Judicial Member, Ravish Sood, and an Accountant Member, M.Balaganesh held that where the AO had framed the assessment in the hands of a non-existent entity, the proceedings and the assessment order so passed would be clearly void and could not be classed as a procedural irregularity of a nature which could be cured by invoking the provisions of Section 292B of the Act.
“We are of a strong conviction that non-issuance of a notice under section 143(2) to the amalgamated company, which forms the very foundation for framing of a valid assessment would divest the AO of his very jurisdiction to frame such assessment,” the tribunal said.
Subscribe Taxscan Premium to view the Judgment
