On appeal, the Tribunal held that the CIT(A) had given a categorical observation that the reassessment was initiated based on the audit objection. Even, on the date of such audit objection, the erstwhile assessee was not in existence pursuant to the amalgamation. Further, despite various intimations given, during penalty proceedings, the Assessing Officer proceeded to frame the re-assessment in the name of the amalgamating company, which was declared void ab initio by the CIT(A). Given this, the reassessment was liable to be set aside. (AY.2008-09)
DCIT v .Palm Tech India Ltd. (2020) 78 ITR 4 (SN)(Mum) (Trib)
S. 148 : Reassessment – Notice — Validity — Amalgamation of companies — Effect — Amalgamating company ceases to exist — Factum of amalgamation brought to notice of AO — Reassessment proceedings against amalgamating company — Not valid [ S.147 ]