Incorrect PAN in reassessment notices can invalidate proceedings once fresh action is issued against the correct amalgamated entity.

Reassessment proceedings based on the PAN of an erstwhile amalgamated company could not continue once the revenue itself initiated fresh proceedings against the same assessee using the correct PAN. The assessee had already intimated the merger and its income had earlier been assessed under Section 143(3). Because the notices and order under Section 148A(d) were issued in the name and PAN of the amalgamated entity, they reflected incorrect identification of the assessee. The HC therefore quashed the impugned notice and order, holding that the earlier proceedings did not survive.

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Issues: Whether reassessment proceedings initiated against the petitioner on the basis of the old PAN of the erstwhile amalgamated company could survive after the revenue itself initiated fresh proceedings against the petitioner with the correct PAN.

Analysis: The petitioner had been amalgamated, had filed consolidated returns, and its income had earlier been assessed under Section 143(3) of the Income-tax Act, 1961. The reassessment notices and the order under Section 148A(d) were issued with the PAN of the erstwhile company, although the petitioner had already informed the department of the merger. During pendency of the petition, the revenue issued fresh notices under Section 148A(b) using the correct PAN of the petitioner, which showed that the earlier proceedings were founded on an incorrect identification of the assessee.

Conclusion: The earlier proceedings did not survive and the impugned order and notice were quashed. The petition was allowed in favour of the assessee.

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