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of <h1>Reassessment proceedings against dissolved partnership firm quashed as no valid notice can be issued to non-existent entity</h1> <h3>Parikh Marketing Private Limited Versus Principal Commissioner of Income Tax, Dhanbad, Deputy Commissioner of Income Tax, Circle 1, Dhanbad.</h3> Parikh Marketing Private Limited Versus Principal Commissioner of Income Tax, Dhanbad, Deputy Commissioner of Income Tax, Circle 1, Dhanbad. - TMI Issues involved:The judgment involves issues related to quashing and setting aside of a Show Cause Notice under section 148A of the IT Act, 1961, an Order under the same section, and a Notice under section 148, all for the Assessment year 2019-20. The issues revolve around the jurisdiction of the assessing officer in issuing these notices to a dissolved partnership firm that was acquired by another entity.Detailed Judgment:Issue 1: Jurisdiction of Assessing OfficerThe petitioner, a Private Limited Company, was involved in a dispute regarding the jurisdiction of the assessing officer who issued notices to a dissolved partnership firm, M/s Parikh Sales, despite the firm being acquired by the petitioner as a going concern. The petitioner contended that the notices were without jurisdiction, non-est, and void ab-initio due to the change in ownership and the informing of the assessing officer about the conversion. The High Court found that the assessing officer's actions were not in line with legal principles and lacked proper application of mind, leading to the quashing of the notices.Issue 2: Merger and DisclosureThe judgment highlighted the merger of M/s Parikh Sales with the petitioner company and the proper disclosure of the former firm's bank account in the petitioner's returns. Despite the disclosure and acceptance of the account in previous assessments, the assessing officer issued notices to the dissolved firm, causing confusion and legal discrepancies. The court emphasized the importance of accurate information and proper assessment procedures in such cases.Issue 3: Legal PrecedentsThe judgment referred to legal precedents, including the decision of the Hon'ble Apex Court in the case of Principal Commissioner of Income Tax, New Delhi v. Maruti Suzuki India Ltd., to support the quashing of the notices issued to the dissolved partnership firm. The court also cited a recent case regarding the issuance of notices in the name of deceased individuals, further reinforcing the principle that legal proceedings must adhere to established legal norms and principles.Conclusion:In conclusion, the High Court ruled in favor of the petitioner, quashing the Show Cause Notice, Order, and subsequent Notice issued for the Assessment year 2019-20. The judgment emphasized the importance of jurisdiction, accurate disclosure, and adherence to legal precedents in assessment proceedings. The decision serves as a reminder of the necessity for assessing officers to act in accordance with the law and established legal principles to ensure fair and just outcomes in tax matters.
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