Reassessment against a struck-off company is void ab initio and cannot be cured by later participation.

A reassessment notice issued under section 148 against a company that had already been struck off from the Register of Companies was held to be invalid because a dissolved entity is not a person in existence for reassessment purposes. Proceedings initiated against a non-existent company are void ab initio and constitute a legal nullity, which cannot be cured by participation or subsequent conduct. On that basis, the notice and all consequential reassessment proceedings were quashed.

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Issues: Whether reassessment proceedings initiated by notice under section 148 of the Income Tax Act, 1961 against a company that had already been struck off from the Register of Companies were valid in law.

Analysis: The notice under section 148 was issued after the company had ceased to exist due to striking off from the Register of Companies. Once an entity has been dissolved, it is not a person in existence for the purposes of reassessment. An assessment or reassessment proceeding initiated against such a non-existent entity is void ab initio and cannot be cured by participation or subsequent conduct. The cited judicial authorities were applied to hold that proceedings against a dissolved company are a legal nullity.

Conclusion: The reassessment notice and all consequential proceedings were invalid and the reassessment order was quashed in favour of the assessee.

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