Notice to non existent entity invalidated as a jurisdictional defect, so reassessment notice and order were quashed.

Issuance of a notice under Section 148 and an order under Section 148A(d) in the name of an entity that had ceased to exist following conversion and amalgamation is a jurisdictional defect and cannot be treated as a mere curable or clerical irregularity. The analysis applies precedent on notices to non existent or dissolved entities and the effect of amalgamation on tax proceedings, concluding such issuance amounts to substantive illegality. Operatively, the impugned notice and consequential order are invalidated and set aside, and the petition succeeds on that ground.

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Issues: Whether an order under Section 148A(d) and a notice under Section 148 of the Income-tax Act, 1961 for assessment year 2018-19 issued in the name of an entity that had ceased to exist due to conversion and subsequent amalgamation can be sustained.

Analysis: The proceeding examines the legal effect of issuing a notice/order in the name of an entity that no longer exists because it had been converted and subsequently amalgamated into another company, and whether such issuance is a mere procedural irregularity curable under general provisions or a jurisdictional defect amounting to substantive illegality. The relevant statutory provisions considered include Section 148 and Section 148A(d) of the Income-tax Act, 1961 governing reassessment and the issuance of notice, as well as Section 292B concerning curable defects. Precedents addressing notices issued to non-existent or dissolved entities and the effect of amalgamation on tax proceedings were applied to determine whether the notice/order is void. The analysis applies the principle that issuance of assessment notices or framing of proceedings in the name of a non-existent entity, where the entity has been converted and amalgamated and the department had been informed, constitutes substantive illegality not remediable as a mere clerical or curable defect.

Conclusion: The impugned order under Section 148A(d) and the notice under Section 148 issued in the name of the non-existent entity are quashed and set aside; the petition is allowed and the impugned notice and consequential orders are invalid.

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