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The Income Tax Appellate Tribunal (ITAT), Mumbai Bench held that the assessment framed for Non-Existent Authority is Void ab initio.
Facts of the case:
The assessee, Atos India Pvt. Ltd. had raised various grounds on merits of various additions/disallowances made by the AO pursuant to DRP directions the counsel for the assessee emphasizes that the assessee had raised an additional ground to vide petition stating that the assessment has been framed on a non-existing entity and accordingly is void ab initio.
Interpretation of law :
The respondent authority contended that the assessee filed its return of income on November 29, 2012. The assessment order has been framed showing the name “M/s. Atos IT Solutions and Services Pvt. Ltd. Formerly Siemens Information Systems (India) Ltd., now known as Atos India Pvt. Ltd.” The DRP order mentions the assessee’s name as “Altos IT Solutions Private Limited, now merged with Atos India Pvt. Ltd., formerly Siemens Information Systems (India) Ltd. However, the Bombay High Court approved the amalgamation on December 21, 2012, with effect from July 01, 2011. The assessee did not file any revised return of income despite the fact that time was available.
The assessee did not get the PAN and particulars of the assessee duly affected and changed in the information system of the Revenue as per the requirement by making the necessary application to the NSDL. Due to a lack of change in the particulars of PAN the Departmental system continued to issue notices and other documents in the pre-amalgamation name.
Due to a lack of change in PAN particulars and names in the departmental system the AO duly framed the order by duly incorporating the full particulars. The assessee itself paid the ITAT appeal fee in 2017 in the name of an earlier company.
The Departmental Representative reiterated that the assessee not following the due procedures for change in name and No. in the PAN details, the Assessing Officer has no option but to frame the assessment by incorporating all the particulars along with the unchanged PAN.
The tribunal consisting of a Judicial Member Pawan Singh and an Accountant Member, Shamim Yahya held that the assessment order framed by the AO in the instant case deserves to be quashed as the same is without jurisdiction, being framed on a non-existent entity. Accordingly, the additional ground raised by the assessee is allowed. Since the entire assessment is quashed on a legal issue, the adjudication of various other grounds of merits becomes infructuous.