The Delhi High Court (HC) held that the notice issued u/s 148 of the Income Tax Act,1961 to a non-existing company is null.
Mr Kapil Goel, Advocate appeared for the petitioner and Mr Ruchir Bhatia, Advocate appeared for the respondent.
Rajasthan Global Securities Pvt ltd, the petitioner challenged the notice dated 17th April 2021 issued under Section 148 of the Income Tax Act, 1961 (‘the Act’), notice dated 28th May 2022 issued under Section 148A(b) of the Act as well as the order dated 27th July 2022 passed under Section 148A(d) of the Income Tax Act and the consequential notice dated 27th July 2022 for the Assessment Year 2013-14.
The Petitioner contended that Aureole Impex Pvt. Ltd. (Transferor Company) was merged with M/s. Rajasthan Global Securities Private Limited (Transferee Company) vide the Delhi High Court’s order dated 21st March 2013 and stated that after the amalgamation order passed by the High Court, the company stood dissolved without winding up. There was no obligation for any income tax returns to be filed by Aureole Impex Pvt. Ltd.
It was stated that the Petitionerhad filed its income tax return for the Assessment Year 2013-14, inclusive of the financial data/numbers of Aureole Implex Pvt. Ltd. for the relevant period, dated 30th September 2013 and scrutiny assessment under Section 143(3) of the Income TaxAct was also done.
The Delhi High Court comprising of Justice Manmohan and Justice Manmeet Pritam Singh Arora viewed that not only the notice was issued in the name of the transferor company but the impugned order under Section 148A(d) of the Income Tax Act, as well as the notice under Section 148 of the Income Tax Act, have been issued on the PAN of the transferor company.
“The impugned order passed under Section 148A(d) of the Income Tax Act as well as the consequential notice dated 27th July 2022 issued under Section 148 of the Income Tax Act for the Assessment Year 2013-14 are set aside and the notice issued under Section 148A(b) of the Income Tax Act is deemed to have been issued to the transferee company”; the High Court held.
The High Court give the Petitioner liberty to file its reply/response to the notice issued under Section 148A(b) of the Act along with all the relevant documents within two weeks from the day of judgement and the Assessing Officer was directed to pass a fresh order under Section 148A(d) of the Income Tax Act.
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