S. 143(2) : Assessment – Notice – Amalgamation -Notice issued in the name of a non-existing entity is bad in law where the assessee had intimated the Department regarding such change – Decisions are to be read in the context in which they are rendered. [S. 143(3), 292BB]
Assessee has intimated the date of Amalgamation and also filed the scheme of Amalgamation in the course of assessment proceedings. However, the assessment was passed in the name of non -existing company. The order of the Assessing Officer was affirmed by the CIT(A). On appeal, the Tribunal held that where the assessee had intimated to the Department regarding the amalgamation of the assessee company, Notice cannot be issued in the name of the non-existing entity.

The Assessee relied on the decision of the Hon’ble Supreme Court in the case of PCIT v. Maruti Suzuki India Ltd( 2019) 416 ITR 613 (SC). However, the Department relied on a subsequent judgment of the Hon’ble Supreme Court in the case of PCIT v. Mahagun Realtors (P.) Ltd. (2022) 443 ITR 194 (SC). It was held that in the case of Mahagun (supra), the assesssee had not disclosed the change in the assesee’s existence and that the subsequent case does not distinguish the case of Maruti Suzuki (Supra).

It was further held that judgments must be read as a whole and the observations from the judgment have to be considered in the light of the questions which were before this Court as held in the case of CIT v. Sun Engineering Works Pvt. Ltd( 1992 ) 198 ITR 297 (SC) (ITA 46/Pun/2021 dated January 02, 2023)( AY. 2014 -15 )
DCIT v. Barclays Global Service Centre Private Ltd. (Pune)(Trib.)
[Coram : Hon’ble Shri Inturi Rama Rao, AM and Hon’ble Shri S. S. Viswanethra Ravi, JM]