ITAT: Non-Issuance of Notice to Amalgamated Company will render the Assessment Invalid

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Judgement:

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.

Conclusion:

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.

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