The Income Tax Appellate Tribunal (ITAT), Bangalore treated assessment order as null as due intimation was given on amalgamation of company by the assessee, M/s. Biocon Biologics Limited.
The assessee, Biocon Biologics Limited [successor. to Biocon Research Limited is engaged in the carrying out Research and Development of drugs and drug delivery systems. For the relevant Assessment Year 2017-18, the return of income was filed declaring `Nil’ income under the normal provisions of the Income Tax Act and book losses as per the provisions of section 115JB of the Income Tax Act. After considering the taxes deducted at source, the assessee had claimed refund of INR 4,68,29,020 in the return of income.
The assessee filed objections before the Dispute Resolution Panel (DRP). The DRP granted partial relief to the assessee. Consequent to the DRP’s directions, the TP adjustment of Rs.2,31,00,871 was reduced to Rs.1,10,31,130. Further, the DRP also directed the AO to set off the TP adjustment with the brought forward losses as provided in the CFL Schedule of return of income.
The Counsel for the assessee submitted that the assessment has been completed on a non-existing entity, inspite of repeated intimation to the Assessing Officer, and therefore, the same is bad in law.
A Bench consisting of Chandra Poojari, Accountant Member and George George K, Judicial Member observed that “The A.O. in the instant case had passed the assessment order in the name of Biocon Research Limited, even though sufficient intimation have been made to the A.O about the merger of Biocon Research Limited with Biocon Biologics Limited during the course of assessment proceedings. The A.O was diligently informed about the amalgamation during the course of assessment proceedings and prior to the passing of the draft assessment order / final assessment order, hence, the ratio of the judgment in the case of Maruti Suzuki India Limited and Spice Infotainment continues to apply and the assessment order in the name of amalgamated company is treated as null and void.”
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