Invalid Notice Issued to Non-Existent Entity Post-Merger Declared Void by High Court

The High Court held that a notice issued under section 148 of the Income Tax Act, 1961 in the name of a non-existent entity, post-merger, was void ab-initio. The petitioner, merged with the entity in question, had informed the Assessing Officer of the amalgamation. The Court, citing relevant case laws, set aside the notice as unsustainable in law, emphasizing that the amalgamating entity ceases to exist upon an approved scheme of amalgamation. The Writ Petition was allowed, with no costs awarded.

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Issues involved:
The petitioner challenges a notice issued under section 148 of the Income Tax Act, 1961 for the assessment year 2016-17, contending that it was issued in the name of a non-existent entity, Times Infotainment Media Ltd.

Judgment Summary:

Issue 1: Validity of Notice Issued in the Name of Non-existent Entity
The petitioner, a wholly owned subsidiary of Bennett Coleman and Company Ltd., was merged with Times Infotainment Media Ltd. (TIML) through a scheme of amalgamation approved by the Bombay High Court. Despite informing the Assessing Officer of the amalgamation, a notice under section 148 was issued in the name of TIML. The High Court held that the notice was void ab-initio as TIML had ceased to exist post-merger, following the legal principle that an amalgamating entity ceases to exist upon the approved scheme of amalgamation. Citing relevant case laws, the Court set aside the notice as unsustainable in law.

Key Points:
- The notice issued in the name of a non-existent entity was deemed void ab-initio.
- The factum of amalgamation was acknowledged by the Assessing Officer and the Ministry of Corporate Affairs.
- The High Court's approval of the scheme of amalgamation rendered TIML non-existent.
- The notice under section 148 was set aside based on legal principles and precedents.

Separate Judgment:
The Writ Petition was allowed, and no costs were awarded.

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