TaxTMI 
TaxTMI 
2021 (8) TMI 777
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.... 1961 (the Act) for the Assessment Year 2012-2013 and the subsequent order [Letter No. ITBA/AST/F/17/2019- 20/1017795202(1)] passed on 5th September 2019 rejecting the objections raised by petitioner. 2. By a notice dated 30th March 2019 issued under Section 148 of the Act, respondent no.1 informed Niraj Realtors and Shares Pvt. Ltd. (Niraj Realtors) that he has reasons to believe that Niraj Realtors' income chargeable to tax for the Assessment Year 2012-2013 has escaped assessment within the meaning of Section 147 of the Act. Niraj Realtors was called upon to deliver a return in the prescribed form for the said Assessment Year. The reasons required to be given for re-opening under Section 148 of the Act was provided by respondent no.1 t....
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....2 for re-opening of assessment of Niraj Realtors, the Assessing Officer had infact issued notice in the name of Alok Knit Exports Pvt. Ltd. A copy of the notice issued under Section 148 of the Act for the Assessment Year 2011-2012 in the name of petitioner as successors of Niraj Realtors alongwith reasons for issuing the notice under Section 148 of the Act is also annexed to the petition. Respondent no.1, however, rejected the objections raised by petitioner that the notice issued under Section 148 of the Act in the name of a non-existent person was bad in law. The reasons for rejection, for ease of reference and better understanding, are reproduced hereinbelow : "................ 3. The above objections are being dealt he....
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.... the name of the earlier company does not become bad in law. .............." 4. One of the ground for rejecting the objection is that the PAN Query Data base showed that PAN AAACN3983A of Niraj Realtors was active and not inactive which according to Assessing Officer signifies that the notice issued in the name of Niraj Realtors does not become bad in law. Annexed to the petition at Exhibit "A" is a copy of the letter dated 17th July 2013 addressed to the Deputy Commissioner of Income Tax, Circle - 7 (1) from Niraj Realtors where Niraj Realtors has informed Deputy Commissioner of Income Tax that this Court, vide its order dated 10th May 2013, has sanctioned the scheme of amalgamation of Niraj Realtors with petitioner with appoin....
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....ommissioner of Income Tax (2018) 405 ITR 296 (Delhi), submitted that that was the effect and mandate of Section 292B of the Act. Mr. Mohanty also relied upon the order passed by the Apex Court when Sky Light Hospitality (supra) was escalated to the Apex Court (Sky Light Hospitality LLP V/s. Assistant Commissioner of Income Tax (2018) 92 taxmann.com 93 (SC)). These do not help Mr. Mohanty's case. This cannot be a general preposition as the Apex Court has expressly stated "In the peculiar facts of this case, we are convinced that wrong name given in the notice was merely a clerical error which could be corrected under Section 292B of the IT Act (emphasis supplied)". 6. The Apex Court in its recent judgment on this subject in Principal Comm....
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....f two learned judges which dismissed the appeal of the Revenue in Spice Enfotainment on 2 November 2017. The decision in Spice Enfotainment has been followed in the case of the respondent while dismissing the Special Leave Petition for AY 2011-2012. In doing so, this Court has relied on the decision in Spice Enfotainment. 7. This quotation squarely applies to this case at hand. In the case at hand as well, the indisputable fact is respondent no.1 has invoked jurisdiction by issuing notice under Section 148 of the Act to an entity that had ceased to exist. This is notwithstanding the fact that respondent no.1 was aware that Niraj Realtors had ceased to exist. Respondent no.1, as noted earlier, we say was aware because the notice under Sec....