S. 148 : Reassessment -Notice issued in the name of non-existent amalgamating company -Amalgamation sanctioned by the Bombay High Court prior to issuance of notice under section 148 -Transferor company had ceased to exist in law -Jurisdictional notice issued against a non-existent entity was invalid -Subsequent participation by the successor company in reassessment proceedings could not confer jurisdiction on Assessing Officer -Defect was jurisdictional and not a mere mistake in description -Section 292B could not validate proceedings initiated against a non-existent person -Reassessment proceedings quashed. [S. 147, 151, 170, 292B.]
The assessee-company had amalgamated with Ganita Technologies & Services Pvt. Ltd. pursuant to a scheme sanctioned by the Bombay High Court on 12-09-2014 with effect from 01-10-2013. Despite the amalgamation, notice under section 148 dated 29-03-2016 was issued in the name of the erstwhile amalgamating company and the reassessment order was also passed in that name. The Tribunal, following the ratio of PCIT v. Maruti Suzuki India Ltd. (SC), held that upon amalgamation the amalgamating company ceased to exist and could not thereafter be regarded as a person against whom assessment proceedings could be initiated. The subsequent participation of the successor company could not confer jurisdiction where the foundational notice under section 148 had been issued against a non-existent entity. The defect went to the root of jurisdiction and could not be cured under section 292B. The notice under section 148 and the reassessment proceedings founded thereon were accordingly held invalid, and the reassessment order was quashed. (AY. 2009-10) (ITA No. 3222/Mum/2026 dt. 18-08-2026)
Ganita Technologies & Services Pvt. Ltd. (Successor in interest to Vocation Invt. & Fin. Co. Pvt. Ltd.) v. ACIT (Mum.)(Trib.) [www.itatonline.org]
[Coram : Hon’ble Shri Om Prakash Kant, AM and Hon’ble Shri Pawan Singh JM]