Revisionary jurisdiction: orders issued in the name of a legally non-existent amalgamated entity are void and must be quashed.

An order issued under the Income-tax Act revisional power was examined where the issuing taxpayer had ceased to exist following an NCLT amalgamation order. The note emphasises that revisionary jurisdiction permits setting aside assessments that are erroneous and prejudicial to revenue, but an order issued in the name of a legally nonexistent entity constitutes substantive illegality. Applying established precedent and the cessation of legal existence on the appointed date, such revision or assessment orders are void ab initio; the operative effect is that orders issued in the name of the amalgamated (non-existent) entity must be quashed.

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Issues: Whether an order passed under Section 263 of the Income-tax Act, 1961 in the name of an entity that ceased to exist on amalgamation is void ab initio and liable to be quashed.

Analysis: The order under challenge was passed in the name of an amalgamated company which ceased to exist with effect from the appointed date as evidenced by the NCLT amalgamation order. Section 263 of the Income-tax Act, 1961 confers revisionary jurisdiction to set aside an assessment order which is erroneous and prejudicial to the interests of revenue; however, an order issued in the name of a non-existent entity constitutes a substantive illegality. Binding precedent establishes that revision or assessment orders in the name of an entity that has ceased to exist are void ab initio. Applying these principles to the facts, the impugned revision order issued in the name of the amalgamated company is void on account of the cessation of the issuing entity's legal existence.

Conclusion: The order passed under Section 263 of the Income-tax Act, 1961 in the name of the amalgamated (non-existent) entity is void ab initio and is quashed; the appeal is allowed in favour of the assessee.

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