Re-Assessment Proceedings against Amalgamated Company: Delhi HC refuses to Quash Proceedings [Read Order]

In a recent ruling, a division bench of the Delhi High Court has refused to quash the re-assessment proceedings against an amalgamated company and asked the latter to co-operate with the proceedings.

Before the bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora, the assessee, M/s Omansh Properties Private Limited contended that the impugned notice dated 20th April, 2021 issued under Section 148 of the Income Tax Act, 1961 is non-est as it had been issued against a non-existent company that had been dissolved by an order of this Court.

The petitioner contended that Income Tax Officer Ward No. 19(1), Delhi has issued a letter dated 27th May, 2022 to the Petitioner stating that the notices issued under Section 148 of the Act between 01st April, 2021 to 30th June, 2021 have been held by the Supreme Court in Union of India &Ors. vs Ashish Agarwal, to be show cause notices under Section 148A(b) of the Act and initiated fresh reassessment proceedings against the amalgamated company.

Upholding the proceedings, the High Court observed that “In the opinion of this Court, the Petitioner should take all its objections in its reply to be filed before the Assessing Officer in the proceedings under Section 148A of the Act. In the event, the time for filing the reply has expired, the Petitioner is given liberty to raise additional grounds by filing a supplementary reply within a week.”

“In case, the Petitioner is aggrieved by the decision of the Assessing Officer, it shall be open to the Petitioner to challenge the same in accordance with law,” the Court said.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.