2018 (10) TMI 2058 - AT - Income Tax

Assessment on Non-Existent Company Declared Null and Void Under Relevant Tax Laws

The ITAT Delhi held that an assessment framed on a non-existent company is null and void. Consequently, the impugned assessment order was quashed, and the ... Assessment framed on a non-existent company - HELD THAT:- As in the light of the order of the Tribunal [2018 (7) TMI 823 - ITAT DELHI] in the case of the assessee quashing the impugned assessment order as framed on a non-existent company, therefore, it was held that such assessment is a nullity in the eyes of law -Departmental appeal stands infructuous and is accordingly dismissed. The Revenue appealed against the assessment order dated 23.10.2015 passed under sections 143(3)/144C of the Income Tax Act, pursuant to directions of DRP-2, contesting the reduction of addition to Rs. 16,88,88,296/- related to international transactions and the exclusion of certain comparables (Accentia Technologies Ltd., Eclerx Services Ltd., Infosys BPO Ltd., TCS E-Serve Ltd.) from the final list. The assessee's counsel relied on the Tribunal's earlier order dated 06.07.2018 in ITA No. 966/2016 for AY 2011-12, wherein the Tribunal quashed the impugned assessment order on the ground that it was framed against a non-existent company, rendering the assessment 'a nullity in the eyes of law.' Given this precedent, the Tribunal held the present departmental appeal to be infructuous and dismissed it. The key legal reasoning rests on the prior finding that an assessment against a non-existent entity is void ab initio, thereby invalidating the Revenue's appeal.