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The Income Tax Appellate Tribunal (ITAT), Mumbai Bench held that non-issuance of a notice to the amalgamated company will render the assessment invalid.
Facts of the case:
The assessee, M/s Siemens Power Engineering Pvt. Ltd. had pursuant to the orders issued under Section 391 to Section 394 of the Companies Act, 1956 by the High Court of Punjab & Haryana was amalgamated with M/s Siemens Limited.
The assessee had vided letters had informed the AO that pursuant to the orders of the High Court of Punjab & Haryana issued under Section 391 to Section 394 of the Companies Act, 1956, it was with effect from 01.10.2011 amalgamated with M/s Siemens Limited.
Interpretation of law:
The assessee vide its letter addressed to the Commissioner of Income-tax, Gurgaon, had brought the aforesaid fact of its amalgamation with M/s Siemens Limited to his notice, along with a request that its case may be transferred to the Commissioner of Income, who exercised the requisite jurisdiction over the case of the amalgamated company i.e M/s Siemens Limited. It is a matter of fact borne from the records that no Notice under section 143(2) was ever issued by the AO to the amalgamated company. M/s Siemens Limited. However, the notice was issued to the non-existent company that is M/s Siemens Power Engineering Pvt. Ltd. and framed the assessment proceedings.
The Tribunal consisting of Judicial Member, Ravish Sood and Accountant member, M.Balaganesh, while quashing the assessment order of the AO held that the non-issuance of a notice under section 143(2) to the amalgamated company in relation to M/s Siemens Limited would therein render the impugned assessment framed by the AO as invalid and void ab initio.