FEIPL merged with the assessee w.e.f 1-4-2012 and the merger was effective from 1-10-2013 and the AO was intimated about the merger on 1-10-2013. However, AO passed a draft assessment order on 30-1-2015 in the name of amalgamating company which was a non-existing entity in the eyes of law on the date of passing the order. Further, failure on part of the AO to pass a valid assessment order amounts to a jurisdictional defect which cannot be cured under S. 292B of the Act or corrected by passing a final assessment order. The order became an illegal order and the entire assessment proceedings based on such an invalid draft assessment order were void ab initio and deserved to be quashed. (AY.2011-12)
Fedex Express transportation & Supply Chain Services (India) (P) Ltd. v. DCIT (2019) 108 taxmann.com 542 / 181 DTR 282 / 200 TTJ 962 (Mum.)(Trib.)
S. 144C : Reference to dispute resolution panel–Draft assessment order passed in the name of amalgamating company, a non-existent entity on the date of passing such order–entire assessment proceedings based on such invalid draft assessment order are void ab initio and deserve to be quashed. [S. 292B]