Assessment on a non-existent amalgamated company is void ab initio and cannot be sustained

Assessment framed in the name of an amalgamating company that had already ceased to exist was treated as without jurisdiction where the revenue was informed of the amalgamation during the proceedings. The draft and final assessment orders were nonetheless issued in the non-existent entity's name, and the tribunal applied the settled principle that an assessment on a non-existent person is void. The assessment was therefore held void ab initio and quashed in favour of the assessee.

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Issues: Whether the assessment framed in the name of a company that had already amalgamated and ceased to exist was valid.

Analysis: The assessee had informed the revenue authorities of the amalgamation during the assessment proceedings. Despite that intimation, the draft and final assessment orders were passed in the name of the amalgamating company. In view of the earlier order in the assessee's own case and the settled principle that an assessment on a non-existent entity is without jurisdiction, the assessment could not be sustained.

Conclusion: The assessment framed on the non-existent entity was held to be void ab initio and was quashed, in favour of the assessee.

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