TaxTMI 
TaxTMI 
2018 (11) TMI 202
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....A) has erred in law and on facts in confirming the action of Ld. AO in assuming jurisdiction in passing the impugned assessment order and the assessment proceedings is bad in law and against the facts and circumstances of the case and more so when the entity in whose name assessment was framed u/s 143(3) did not exist. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in assuming jurisdiction and in passing the assessment order on the "non-existed entity" is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in mak....
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....ng Officer as under : * All the advance received was for the purchase of shares of only one company i.e. Akriti Global which is an unlisted company and with no big name or credentials. It is surprising that 6 unrelated persons have given advance for the purchase of shares of only one company which is unlisted. This is unusual. * Out of advance of Rs. 1.56 Cr from 6 parties for purchase of shares, the amount of Rs. 1.05 Cr was not utilized and the money was allegedly refunded back to them. * The money received from the parties was received without any agreement or written document to that effect. This is extremely surprising and unusual. * The advance received was not interest bearing. In case of Sh Brij B....
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....tion on merits observing that no arguments were addressed on merits of addition. Aggrieved, the assessee is in appeal before the Tribunal. 4. During the course of hearing, the ld. AR of the assessee submitted that the AO has passed the impugned assessment order by assuming jurisdiction on an entity i.e. 'assessee company, which did not exist on the date of framing of such assessment, rather it stood amalgamated with other company, namely, M/s. SUCON INDIA LIMITED. As such the jurisdiction assumed and assessment order made on the dead person/amalgamated company, makes the assessment order a nullity and void ab initio. Reliance is placed on the following decisions, which were also relied by the assessee before the ld. CIT(A) : ....
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....ssessee, we have considered the relevant documentary evidences brought on record in the form of paper book in the light of Rule 18(6) of the ITAT Rules, 1962. It is true that vide order dated 22.08.2014, the Hon'ble High Court of Delhi has sanctioned the Scheme of Amalgamation in respect of 8 transferors companies in which the assessee company is also a party as transferor company No. 4. This order of the Hon'ble High Court is exhibited at pages 8 to 17 of the assessee's paper book. In the said order of the Hon'ble High Court, at clause No. 13, the Hon'ble High Court mentions that: "The Regional Director states that despite notice, the Income tax authorities have not raised any objection with regard to the scheme." ....
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....n the case of M/s Images Credit and Portfolio [P] Ltd in ITA Nos. 5301 to 5306 and ITA No. 5418/DEL/2013 dated 19.12.2014 on identical set of facts has held as under: "6.2. The ratio of the above decision would be squarely applicable to the case of the assessee because the facts are identical. In the above mentioned case notice under Section 143(2) of the Act was sent to the company which was not in existence on the date of the issue of notice. Similarly in the case of the assessee notice under Section 153C was issued in the name of M/s Image Credit and Portfolio Pvt. Ltd. on 10th September,2010 when this company was not in existence. Therefore, the ratio of the decision of Hon'ble Jurisdictional High Court in the case of M/s Spice....
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....nd respectfully following the decision of Hon'ble Jurisdictional High Court in the case of M/s Spice Entertainment Ltd. we hold that the issue of notice under Section 153C in the name of M/s Image Credit and Portfolio Pvt .Ltd. on 10th September,2010 is void. Accordingly the same is quashed. Once the notice issued under Section 153C has been quashed the assessment completed in pursuance to such notice also cannot survive and the same is also quashed." 14. On a thoughtful consideration of the facts of the case in hand and in the light of the judicial decisions discussed hereinabove, we have no hesitation to hold that the assessment has been framed on a non-existing entity and, therefore, the assessment order has to be quashed. We or....