Notice u/s 148 issued to a company which ceased to exist after its conversion into a LLP is illegal as it has been taken against a non- existent entity

(i) We find that the issue regarding the invalidity of a notice issued to a non-existent entity is no longer res-integra and is covered by the decision of the Hon’ble Supreme Court in the case of Principal Commissioner Income Tax Vs. Maruti Suzuki India Ltd. [(2020) 18 SCC 331 : (2019) 416 ITR 613 (SC)]. Following the decision of the Hon’ble Supreme Court in Maruti Suzuki India Ltd. (supra), this Court in the case of Diversey India Hygiene Private Limited Vs. The Assistant Commissioner of Income Tax, Circle 3(2) and Ors. [Writ Petition No.3034 of 2022 with Writ Petition No.3505 of 2022, decided on 8th November 2023] also quashed the notices issued under section 148 to a non-existent entity.

(ii) Considering the law laid down as discussed above, we are clearly of the view that in the present case, the notice issued under section 148 to the erstwhile company, namely, Erangal Comtrade and Consultancy Private Limited, cannot be allowed to stand and is hereby quashed and set aside. Once we have quashed the notice issued under section 148, then naturally the impugned assessment order dated 30th March 2022 also cannot be allowed to stand and is hereby quashed and set aside. This is for the simple reason that the said assessment order emanates from the notice issued under section 148.