2026 (2) TMI 1316 - SCH - Income Tax

Void ab initio of proceedings against non existent companies; fresh notice issued and subject to statutory challenge.

Assessment orders issued in the name of companies that ceased to exist due to an amalgamation were treated as void ab initio by the High Court when ... Assessment orders passed in the name of non-existing companies on account of amalgamation order by which these companies were merged As decided by HC [2025 (2) TMI 612 - BOMBAY HIGH COURT] inspite of the fact of the AO being informed of the amalgamating company having ceased to exist as a result of the scheme of amalgamation, if the proceedings are initiated against the non-existing companies, then such proceedings are void ab initio although the amalgamated company participated in the proceedings. HELD THAT:- We are informed by respondent that pursuant to the decision of the High Court, the petitioner/revenue has issued fresh notice on 17.07.2025. In this view of the matter, we see no reason to entertain the present Special Leave Petition and is, accordingly, dismissed. We are informed by A.S.G. that the respondent has in fact challenged the said notice by filing a writ petition under Article 226 of the Constitution of India. Petitioner/revenue will be entitled to raise all objections, including questions of law and fact in opposition to the writ petition. It is for the High Court to consider the same and dispose it of in accordance with law. Outcome: Special Leave Petition dismissed on the ground of fresh notice issued.