The assessee is engaged in the business of rendering call centre services. The Primary issue involved was whether the penalty order issued in the old name of the company after its name change was valid. The revenue contended that the penalty order issued in the former name of the company should be considered valid under Section 292B of the Income-tax Act, which allows for the correction of clerical errors. The assessee argued that the penalty order was invalid as it was issued in the name of an entity that had ceased to exist due to a name change. The Hon’ble Tribunal held that the penalty order was invalid as it was issued in the name of a non-existent entity after the company had changed its name.

The Hon’ble High Court held that the penalty order issued in the former name of the company was valid under Section 292B of the Income-tax Act, as the entity remained the same despite the name change. (AY. 2006-07)