In a recentcase, the High Court of Calcutta quashed the notice issued under section 148 of the Income Tax Act, 1961 towards a non-existing company.
Brillant Credit & Finance Private Limited, the petitioner has challenged the impugned notice dated June 30, 2022, relating to the assessment year 2017-18 under section 148 of the Income Tax Act, 1961 which is a transferor company on the grounds that the impugned notice has been issued in the name of the company which has already been amalgamated on October 04, 2019 w.e.f. 01.04.2018 and that the department has been intimated about this amalgamation which is a matter of record and such notice in the name of a non-existing company is not tenable in the eye of the law.
The petitioner relied in the case of Takshashila Realties Pvt. Ltd. v. Deputy Commissioner of Income Tax, where the impugned notices under section 148 of the Income Tax Act have been issued against the original assessee on 21.01.2011 to reopen the assessment for the Assessment year 2009-10. It is also not in dispute that the respective petitioners-original assessee is ordered to be amalgamated with one Takshasila Gruh Nirman (Subsequently named Takshashila Realties Pvt. Ltd). The scheme of amalgamation has been sanctioned by the Court. It can be said that the same has been issued against the non-existent Company. It cannot be disputed that once the scheme for amalgamation has been sanctioned by the Court with effect from 01.04.2010, from that date amalgamating Company would not be in existence.
A single judge bench comprising Justice Md. Nizamuddin viewed that the impugned notice dated June 30, 2022, and all further steps under the said impugned notice also is not tenable in the eye of the law.
While allowing the petition, the Court quashed the impugned notice solely on the ground that the impugned notice was issued in the name of a non-existing company despite revenue having notice and knowledge of the non-existence of such Company.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
