Re-Assessment Against Non-Existent Company Not Valid despite Active PAN: Bombay HC [Read Order]

The Bombay High Court has recently in a writ petition filed before it held that Re-assessment against non-existent company was not valid despite active Permanent Account Number.

Paras Savla and Harsh R. ShahF advocates appeared for the Petitioner and Suresh Kumar advocate appeared for the Respondents.

Petitioner CLSA India Private Limited filed the writ petition against the notice issued by the respondent re-open the assessment of  Laysin BPO Pvt. Ltd. On reply to the notice Petitioner informed that Laysin BPO Pvt. Ltd amalgamated with Petitioner Company hence now it did not exist. But the respondent made a penalty against the company. Petitioner sought the dropping of the proceedings initiated against the said non-existent entity and seeking deletion of penalty.

Counsel for the petitioner submits that in the assessment year 2017 respondents have already informed the amalgamation of the Laysin BPO Pvt. Ltd.

Counsel for the respondent submits that Reassessment was justified in view of the fact that the PAN in the name of the non-existent entity had remained active hence which could not assume that none existed.

The division bench of Justice Dhiraj Singh Thakur and Kamal Khata Allowed the writ petition and deleted the penalty imposed upon the assessee company .

To Read the full text of the Order CLICK HERE

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CLSA India Private Limited Vs The Deputy Commissioner of Income-tax , 2023 TAXSCAN (HC) 359 , WRIT PETITION NO. 2462 OF 2022 , 10th FEBRUARYF 2023.