Assessment against a non-existent amalgamated company is invalid, and participation in proceedings cannot cure the jurisdictional defect.

An assessment order and draft assessment order issued in the name of an amalgamating company that had already ceased to exist were invalid. Once the Assessing Officer had notice of the amalgamation, jurisdiction could not be validly exercised against the non-existent predecessor entity. The assessee's participation in the proceedings did not cure the defect or create estoppel against law. Applying the settled principle that proceedings initiated or continued against a non-existent entity are incompetent, the Delhi HC upheld the challenge to the assessment and dismissed the appeal.

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Issues: Whether an assessment order and draft assessment order passed in the name of a company that had ceased to exist upon amalgamation could be sustained.

Analysis: The Assessing Officer had notice of the amalgamation before passing the draft assessment order, yet proceeded against the predecessor entity. Once the amalgamating company ceases to exist, jurisdiction cannot be validly exercised in its name. Participation in the proceedings does not cure the fundamental defect or operate as estoppel against law. The decision follows the binding principle that assessment proceedings initiated or continued against a non-existent entity are invalid.

Conclusion: The assessment was incompetent and the challenge to the order failed; the appeal was dismissed, in favour of the assessee.

Ratio Decidendi: An assessment or jurisdictional notice issued in the name of an entity that has ceased to exist due to amalgamation is invalid and cannot be sustained by participation of the assessee in the proceedings.

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