2020 (12) TMI 388

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..... Brief facts of the case are that for the AY 2007-08 the assessee filed the return of income on 15.11.2007 declaring Nil income and the order u/s 143(3) of the Act was passed on 18.12.2009 at an income of Rs. 3,86,77,250/-. Subsequently, pursuant to the survey operation u/s 133A of the Income Tax Act, 1961 ("the Act") in case of M/s Nirbhay Kumar & others, the case of the assessee was reopened with the issuance of notice u/s 148 on 25.03.2014. Assessee filed objections on 03.04.2014 stating that w.e.f. 01.04.2006 M/s Anjani Exports Ltd. was merged with M/s Anjani Technoplast Ltd. and, therefore, the notice issued on M/s Anjani Exports Pvt. Ltd. which is a non-existant company is bad under law. Learned Assessing Officer, however, by order d....

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....ets and liabilities of the company and also as a matter of convenience keeping in view the facts of the case; and further that, the scheme of amalgamation also provides for the merger of all the assets and liabilities including those towards the Income Tax Department. On this premise Ld. Learned CIT(A) confirmed the findings of the learned Assessing Officer not only in respect of jurisdiction but also the additions. 4. Assessee is, therefore, before us in this appeal stating that the notice dated 25.03.2014 u/s 148 is bad under law and the authorities below failed to notice that the assessment was completed without the learned Assessing Officer properly assuming the jurisdiction. Reliance is placed on the decisions reported in PCIT vs Ma....

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....pany. Subsequently, notice u/s 148 was issued on 25.03.2014 was issued and addressed to Principal Officer M/s Anjani Exports Pvt. Ltd. A reading of the assessment order u/s 143(3) passed on 16.12.2009 clearly establish that by the day the learned Assessing Officer of M/s Anjani Technoplast Ltd. who is also the learned Assessing Officer for M/s Anjani Exports Ltd. Having knowledge by that date that there was merger of M/s Anjani Exports Pvt. Ltd. with M/s Anjani Technoplast Ltd., he issued notice u/s 148 to M/s Anjani Exports Ltd. on 25.03.2014. 7. It could also be seen from the assessment order dated 31.03.2015 passed u/s 147/144 that as early as on 03.04.2014 the assessee approached the learned Assessing Officer stating that the notice ....

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....the amalgamation, if the jurisdictional notice was issued only on its name, on the basis of which such jurisdiction was invoked was fundamentally at odds with the legal principle that the amalgamating company ceased to exist upon the approved scheme of amalgamation and even if the assessee participates in the proceedings, it cannot as anestoppel against law. 10. A coordinate bench of this Tribunal in ACIT Vs. M/s Pride Residency (P) Ltd. in ITA No. 4176/Del/2017 for the AY 2007-08 by order dated 12.12.2019 also held that when two companies amalgamate and merge to one, the transferor company loses its entity as the decisions to have its business, and their respective rights and liabilities are determined under the scheme of amalgamation, ....