AO passed an assessment order in the name of the Company already merged with another company pursuant to a scheme of arrangement sanctioned by the High Court.  AO initiated proceedings u/s 154 during pendency of appeal before CIT (Appeals).

On appeal, the Hon’ble Court observed that the factum of merger was already within the knowledge of AO, even then the AO passed the order in the name of entity which had ceased to exist.  Accordingly, the Hon’ble Court held that there is no case of inadvertent error or mistake and therefore, rectification order passed three years after framing of the original assessment order even during the pendency of the appeal of the assessee, the rectification order was unsustainable.(AY. 2013-14)