Invalidity of assessment order in name of non existent entity: order is void ab initio where Revenue knew of amalgamation.

Whether an assessment order dated 30.03.2021 issued in the name of a non existent amalgamating entity is valid: the HC applied precedent distinguishing clerical-name errors curable under assessment procedure from substantive jurisdictional defects and found the latter where the Revenue, though informed of amalgamation before the final order, issued the final assessment solely in the name and PAN of the dissolved predecessor without recording a system limitation. Outcome: the final assessment order is void ab initio and the appeal was dismissed.

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Issues: Whether the final assessment order dated 30.03.2021 issued in the name of the amalgamating/non-existent entity is valid or void ab initio.

Analysis: The Court examined the factual matrix: return filed by the predecessor, notice under Section 143(2) issued when predecessor existed, approval of amalgamation effective from an appointed date, intimation of amalgamation to the Revenue before the final assessment order, TPO and DRP orders issued in the name of the successor, and the draft assessment referring to both entities while the final assessment order was issued solely in the name and PAN of the amalgamating (now non-existent) entity. The Court applied controlling authorities including Spice Enfotainment, Maruti Suzuki, Sony Mobile, Mahagun Realtors and subsequent coordinate decisions, and considered the scope of Section 292B and Section 154. Those precedents distinguish cases where the wrong name was a mere clerical error curable under Section 292B from cases where issuance of jurisdictional notice or final order in the name of a non-existent entity amounts to a substantive illegality that cannot be cured. The Court found that the Revenue was informed of the amalgamation prior to final assessment and yet proceeded to pass the final order in the name of the non-existent amalgamating entity without recording that it was due to a system limitation; the defect therefore falls within the line of cases holding such orders void.

Conclusion: The final assessment order dated 30.03.2021 passed in the name of the non-existent amalgamating entity is void ab initio; no substantial question of law arises for admission and the appeal is dismissed.

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