Assessment Order Quashed for Non-Existing Entity: Tribunal Ruling

The Tribunal allowed the assessee's appeal, quashing the assessment order as being without jurisdiction due to being framed on a non-existing entity resulting from a merger. The Tribunal held that assessments on non-existing entities are void ab initio, citing a Supreme Court decision. The appeal was allowed, and the assessment order was declared void ab initio on 24/12/2019.

---

---

Issues involved:
Validity of assessment framed on a non-existing entity.

Detailed Analysis:

1. Background:
The appeal in ITA No.1554/Mum/2016 for A.Y. 2011-12 was preferred against the final assessment order passed by the Assessing Officer under section 143(3) read with section 144C(13) of the Income Tax Act, following the directions of the Dispute Resolution Panel (DRP) under section 144C(5) for the A.Y. 2011-12.

2. Additional Ground Raised:
The assessee raised an additional ground challenging the assessment framed on a non-existing entity, claiming it to be void ab initio, despite other grounds on merits. The assessment was made in the name of a company that had ceased to exist due to a merger.

3. Facts and Submissions:
The facts revealed the evolution of the company's name and ownership due to mergers and changes in the ultimate holding company. The jurisdiction was transferred between assessing officers following the merger. The assessee had submitted relevant documents to the assessing officers regarding the merger.

4. Legal Issue Admitted:
The Tribunal admitted the additional ground raised by the assessee, as the issue went to the root of the matter and did not require verification of fresh facts.

5. Tribunal's Findings:
The Tribunal noted that despite the awareness of the merger and the directions by the DRP in the name of the merged entity, the final assessment order was passed in the name of the erstwhile company that no longer existed. Citing the Supreme Court's decision in a similar case, the Tribunal held that assessments on non-existing entities are void ab initio and quashed the assessment order.

6. Conclusion:
The Tribunal allowed the assessee's appeal, quashing the assessment order as being without jurisdiction due to being framed on a non-existing entity. Consequently, the adjudication of other grounds on merits became irrelevant.

7. Final Decision:
The appeal of the assessee was allowed, and the assessment order was declared void ab initio. The judgment was pronounced on 24/12/2019.

---