Assessment against a dissolved company is void where reassessment is framed in the name of a non-existing entity.

Reassessment and assessment issued in the name of an amalgamated company that had already ceased to exist were held invalid for want of jurisdiction. The company had merged before completion of the proceedings, and the Assessing Officer had been informed of the amalgamation, yet the notice and assessment order were still framed against the dissolved entity. Such an error was treated as going to the root of jurisdiction, not as a curable procedural defect, and the saving provision for mistakes or omissions could not validate it. Participation by the successor company did not cure the defect. The reassessment and assessment were therefore void.

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Issues: Whether reassessment proceedings and the assessment made in the name of an amalgamated company that had ceased to exist were valid.

Analysis: The company had merged with effect from a date prior to the reassessment, and the Assessing Officer was informed of the amalgamation before completion of the proceedings. The reassessment notice and the assessment order, nevertheless, were issued in the name of the dissolved entity. In such a situation, the assessment is not a mere procedural lapse. An assessment against a non-existing person goes to the root of jurisdiction and cannot be cured by invoking the provision that saves mistakes, defects or omissions in proceedings. Participation by the successor company does not validate an assessment made against a dead entity.

Conclusion: The reassessment and assessment framed in the name of the non-existing amalgamating company were invalid and void, and the assessee succeeded on the jurisdictional ground.

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