Assessment invalidated due to non-existent entity post-amalgamation. Appeal allowed for the appellant. The tribunal found the assessment invalid as it was made in the name of a non-existent entity post-amalgamation. The assessment dated 25-10-2018 was ...
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Assessment invalidated due to non-existent entity post-amalgamation. Appeal allowed for the appellant.
The tribunal found the assessment invalid as it was made in the name of a non-existent entity post-amalgamation. The assessment dated 25-10-2018 was quashed, and the appeal was allowed in favor of the appellant. All other arguments on merits were deemed infructuous.
Issues: Validity of impugned assessment regarding amalgamation of entities.
Analysis: The appeal for the assessment year 2014-15 pertained to the original assessee, M/s. Vivimed Labs (Alathur) Pvt. Ltd., which had amalgamated into M/s. Vivimed Labs Ltd. with different PANs. The assessment was framed following directions from the Dispute Resolution Panel-1 in Bengaluru. The primary issue for consideration was the validity of the assessment.
The appellant argued that the assessment was invalid as it was made in the name of a non-existent entity post-amalgamation. Citing a landmark judgment, the appellant contended that the assessment should be declared void ab initio due to the approved amalgamation scheme. The Revenue, however, argued that the assessment was valid as notices were issued in the name of the appellant post-amalgamation, ensuring compliance with the Income Tax Act.
After hearing both parties, the tribunal found no merit in the Revenue's argument. The tribunal noted that notices were issued post-amalgamation to the former entity, M/s. Vivimed Labs (Alathur) Pvt. Ltd., indicating that the assessment was made in the name of a non-existent entity. The tribunal rejected the Revenue's argument that mentioning both entities' names and PANs satisfied legal requirements, citing a previous apex court judgment that emphasized the need for assessment in the name of an existent entity.
The tribunal concluded that the assessment was invalid as it was made in the name of a non-existent entity, post-amalgamation. The assessment dated 25-10-2018 was quashed, and the appeal was allowed in favor of the appellant. All other arguments on merits were deemed infructuous. The order was pronounced on 18th August 2021.
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