TaxTMI 
TaxTMI 
2017 (7) TMI 1045
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....ssment proceedings were continued in the name of non-existent merge entity i.e. "M/s. Suzuki Powertrain India Ltd" and final assessment order was also passed in the name of nonexistent entity. Thus, the grievance of the assessee is related to the validity of the assessment order framed u/s 143(3) read with Section 144C(1). 3. The assessee filed the return of income declaring income of Rs. 212,51,51,156/- on 28/11/2012. The erstwhile entity M/s. Suzuki Powertrain India Ltd. was amalgamated with M/s Maruti Suzuki India Ltd. w.e.f. 1/4/2012 as a result of scheme of amalgamation duly approved by the order of the Hon'ble Delhi High Court dated 29th January 2013. The amalgamation was taken on record by the Registrar of Companies (ROC) on 17th Ma....
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....ct that the amalgamating company M/s Suzuki Powertrain India Ltd. amalgamated with M/s Maruti Suzuki India Ltd. w.e.f. 01.04.2012, as a result of scheme of amalgamation duly approved by the Hon'ble Delhi High Court vide order dated 29.01.2013 and the assessment in this has been framed by the AO vide order dated 03.03.2015. Therefore, it is clear that when the assessment order was passed on 03.03.2015, M/s Suzuki Powertrain India Ltd. was not inexistence. It is also noticed that the aforesaid fact was in the knowledge of the department as the assessee informed vide various letters mentioned in para 5 of the former part of this order which were written to the various Tax Authorities. However, the Maruti Suzuki India Ltd. AO in spite of....
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....n it filed the returns in respect of two assessment years in question. However, before the case could be selected for scrutiny and assessment proceedings could be initiated, M/s Spice got amalgamated with M Corp Pvt. Ltd. It was the result of the scheme of the amalgamation filed before the Company Judge of this Court which was dully sanctioned vide orders dated 11th February, 2004. With this amalgamation made effective from 1st July, 2003, M/s Spice ceased to exist. That is the plain and simple effect in law. The scheme of amalgamation itself provided for this consequence, inasmuch as simultaneous with the sanctioning of the scheme, M/s Spice was also stood dissolved by specific order of this Court. With the dissolution of this company, its....
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....er held as under: "Once it is found that assessment is framed in the name of non-existing entity, it does not remain a procedural irregularity of the nature which could be cured by invoking the provisions of Section 292B. The framing of assessment against a non-existing entity/person goes to the root of the matter which is not a procedural irregularity but a jurisdictional defect as there cannot be any assessment against a 'dead person'." 13. In the present case also as the assessment was framed in the name of non-existing entity i.e. M/s Suzuki Powertrain India Ltd. which amalgamated with M/s Maruti Suzuki India Ltd. and this irregularity was not curable. Therefore, the assessment order passed by the AO in the name of non- exi....
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....d therefore, it was not inexistence. Moreover, it is clear from Maruti Suzuki India Ltd.the provisions of Section 170(2) of the Act that in the case of amalgamation, the assessment must be made on the successor i.e. the amalgamated company and not on the predecessor i.e. amalgamating company. Therefore, in the present case, the assessment framed by the AO vide order dated 29.12.2015 on the amalgamating company i.e. M/s Suzuki Powertrain India Ltd. which was not inexistence on the date of passing the assessment order was not valid and as such the same is quashed. Since we have allowed ground No. 1 of the assessee and assessment order is quashed, therefore, no finding is given on the other issues raised by the assessee. 16. In the result, ....