Delhi HC sets aside Assessment proceedings initiated against a Non-Existent Company [Read Order]

The Delhi High Court set aside the assessment proceedings initiated against a non-existent company.

The present writ petition has been filed by M/s Bit-Byte Investment Services Pvt. Ltd, the assessee challenging the show cause notice dated 12th March 2022 issued under Section 148A(b) of the Income Tax Act, 1961 [‘the Act’] as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, both dated 30th March 2022 for the Assessment Year 2018-19.

It was stated by the petitioner that the impugned order and notices are void ab-initio as they have been issued in the name of “M/s Leasemen Fin-invest India Ltd.” a non-existent entity which was merged with the Petitioner with the effective date being 01st April 2015 vide order dated 12th July 2018 passed by the NCLT.

He contended that even on the Income Tax Portal, the PAN of the non-existent transferor company was merged with the PAN of the transferee company i.e. the Petitioner and after a detailed examination, an assessment order dated 22nd February 2021 was passed under Section 143(3) read with Section 143(3A) and 143(3B) of the Act without making any additions.

The respondent revenue stated that they have no objection if the impugned order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act are set aside and the matter is remanded back for a fresh decision by the Assessing Officer.

Justice Manmohan and Justice Manmeet Pritam Singh Arora set aside the impugned order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act and the matter was remanded back to the Assessing Officer with a direction to pass a fresh order by law after considering the reply filed by the Petitioner-assessee dated 25th March 2022 within eight weeks.

Mr Gautam Jain with Mr Ajit Kumar Jha and Mr Piyush Kumar Kamal, Advocates appeared on behalf of the petitioner and Mr Ajit Sharma with Mr.A.Renganath, Advocate appeared on behalf of the respondent.

To Read the full text of the Order CLICK HERE

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