TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 847
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....uter Services Limited' even though the company was not in existence having been dissolved upon its amalgamation with the Appellant. 2. The Appellant submits that the order passed in the name of an assessee not in existence be struck down and annulled as ab initio or otherwise null and void. 3. The order of the learned CIT is bad in law, erroneous, in excess of want of jurisdiction and otherwise void. 4. On the facts and circumstances of the case and in law, the learned CIT erred in holding that the order under Section 143(3) of the Act was erroneous and prejudicial to the interests of the revenue. 5. On the facts and circumstances of the case and in law, the revisionary proceedings under Section 263 of the Act are bad in law in absence of any new fact, information, corroborative evidence or material being made available by the CIT, the impugned order under Section 263 of the Act be annulled and quashed. 6. On the facts and circumstances of the case and in law, the revisionary proceedings under Section 263 of the Act merely on the basis of findings of the internal audit objections of the income tax department are bad in law and required to be quashed. 7. On the facts....
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....n not disallowing the civil monetary penalty of Rs. 44.71crores which was claimed by the assessee as an expenditure in its profit and loss account. Accordingly, the Pr. CIT called upon the assessee to explain as to why the order passed by the A.O under Sec. 143(3) r.w.s 144C(3), dated 25.05.2015 may not be revised under Sec.263 of the Act. The explanation advanced by the assessee that no infirmity did emerge from the assessment framed by the A.O. however, did not find favour with the Pr. CIT. Accordingly, the Pr. CIT held the assessment order passed by the A.O under Sec. 143(3) r.w.s 144C, dated 25.05.2015 as erroneous insofar it was prejudicial to the interest of the revenue and directed the A.O to disallow the claim of expenses of Rs. 569 crores that was raised by the assessee on account of class action settlement consideration. As regards the claim of civil monetary penalty of Rs. 44.71 crores was concerned, it was observed by the Pr. CIT, that though prima facie the said amount was not eligible for deduction, but as the assessee had claimed that the same was deducted from the reserve created in financial year 2008-09, hence no adverse inference was to be drawn as regards the sa....
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....d 25.07.2019 (copy placed on record). It was submitted by the ld. A.R, that as the assessment order passed by the A.O under Sec. 143(3) r.w.s 144C(3), dated 25.05.2015 having been passed in the hands of the non-existent entity was non-est in the eyes of law, therefore, the order passed by the Pr. CIT-2, Mumbai under Sec. 263, therein revising the said order would not stand on a better footing. In order to fortify his contention that both the assessment order and the revisional order under Sec. 263 were passed in the hands of a non-existent entity viz. M/s Satyam Computers Services Ltd., the ld. A.R had drawn our attention to the fact that in both the respective orders the PAN Number of the aforesaid amalgamating entity i.e "AACCS8639Q" was mentioned. The ld. A.R in order to substantiate his claim that an assessment framed in the hands of a non-existent company is non-est in law, relied on the judgment of the Hon‟ble Supreme Court in the case of CIT Vs. M/s Spice Enfotainment Ltd. (Civil Appeal No. 285 of 2014, dated 02.11.2017). Also, reliance was placed by the ld. A.R on certain orders of the coordinate benches of the Tribunal viz. (i) Westlife Development Ltd. Vs. Pr. CIT (....
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....elopment system and application software either for its own use or for export. On 15.07.1991 the company changed its name to M/s Satyam Computers Services ltd. Subsequently, on 26.08.1991, the company went public and 81.22% shareholding was offered to the public. M/s Satyam Computers Services ltd. was subsequently merged with the assessee company i.e M/s Tech Mahindra Ltd. w.e.f 01.04.2011. Subsequent to the aforesaid merger, the existing proceedings against Satyam Computers Services Ltd. were taken over by the assessee company. 8. Admittedly, as is discernible from the assessment order the fact that M/s Satyam Computers Services Ltd. had been merged with M/s Tech Mahindra Ltd. 01.04.2011 was clearly to the knowledge of the assessing officer. In fact, a specific mention of the fact that M/s Satyam Computers Services Ltd. had merged with the assessee company on 01.04.2011 and all the existing proceedings against it were taken over by the assessee company finds a specific mention in the assessment order passed by the A.O under Sec. 143(3) r.w.s 144C(3), dated 25.05.2015. However, we find that despite being conversant of the fact that M/s Satyam Computers Services Ltd. having been m....
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....2013 a scheme for amalgamation of Suzuki Powertrain India Ltd. and Maruti Suzuki India Ltd. was approved by the High court w.e.f 01.04.2012. As per the terms of the approved scheme the liabilities and duties of the transferor company were to stand transferred to the transferee company without any further act or deed. On 2nd April, 2013, Maruti Suzuki India Ltd. intimated the A.O about the amalgamation. The case was selected for scrutiny and a notice under Sec.143(2) of the Act was issued on 26.09.2013, followed by a notice under Sec.142(1) to the amalgamating company. On 22nd January, 2016, the Transfer Pricing Officer passed an order under Sec. 92CA(3) of the Act. On 11th March, 2016, a draft assessment order was passed in the name of Suzuki Powertrain (amalgamated with Maruti Suzuki India ltd.). It is a matter of fact that the assessee viz. Maruti Suzuki India Ltd. had participated in the assessment proceedings of the erstwhile amalgamating entity i.e Suzuki Powertrain India Ltd., through its authorized representatives and officers. On 14th October, 2016, the DRP issued its order in the name of Maruti Suzuki India Ltd. (as successor in interest of eartwhile Suzuki Powertrain Ind....
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....estion is whether on the amalgamation of the India Sugar Company with the appellant Company, the Indian Sugar Company continued to have its entity and was alive for the purposes of Section 42(1) of the Act. the amalgamation of the two companies was effected under the order of the High Court in proceedings under Section 391 read with Section 394 of the Companies Act. The Saraswati industrial Syndicate. the trans free Company was a subsidiary of the indian Sugar Company, namely, the trasferor Company. Under the Scheme of amalgamation the Indian Sugar Company stood dissolved on 29th October, 1962 and it ceased to be in existence thereafter. Though the scheme provided that the transferee Company the Saraswati Industrial Syndicate Ltd. undertook to meet any liability of the Indian Sugar Company which that Company incurred or it could incur, any liability, before the dissolution or not thereafter. Generally, where only one Company in involved in change and the rights of the share holders and creditors are varied, it amounts to reconstruction or reorganisation or scheme of arrangement. In amalgamation two or more companies are fused into one by merger or by taking over by another. Recon....
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.... India Ltd. (supra) and M/s Spice Enfotainment Ltd. (supra), we are of the considered view that the order passed by the Pr. CIT-2, Mumbai, cannot be sustained and is liable to be vacated on the said count itself. Apart there from, we are also persuaded to subscribe to the claim of the ld. A.R that in case the assessment in itself having been framed in the hands of a non-existent entity is found to be non-est in the eyes of law, the same thereafter cannot be revised by the CIT under Sec. 263 of the Act. In fact, we are of a strong conviction that an assessment order which in itself is found to be non-est in the eyes of law cannot be revised by the CIT, for the reason, that the same would imply extending/granting fresh limitation to the A.O for passing of a fresh assessment order. Our aforesaid view is fortified by the order of a coordinate bench of the Tribunal i.e ITAT, Mumbai "G" Bench in the case of West Life Development Ltd. Vs.PCIT-5, Mumbai (2017) 88 taxman.com 439 (Mum). Accordingly, in the backdrop of our aforesaid observations, we are of the considered view that now when the assessment order passed by the A.O under Sec. 143(3) r.w.s 144C(3), dated 25.05.2015 is in itself f....