2022 (4) TMI 88

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....n merit. The assessee has challenged the exercise of revisionary jurisdiction by the ld. PCIT u/s 263 of the Act on a non-existent company, M/s. Sri Ram Financial Consultants Pvt. Ltd. on the ground of being void, ab-initio and invalid in the eyes of law. 3. The facts in brief are that Sri Ram Financial Consultants Pvt. Ltd. was merged with the assessee-company M/s. Bbigplas Poly Pvt. Ltd. w.e.f. 01.04.2018 vide order dated 23.01.2019 passed by NCLT and consequently Shri Ram Financial Consultants Pvt. Ltd. has ceased to exist w.e.f. 1.4.2018. The said entity Sri Ram Financial Consultants Pvt. Ltd. filed its return of income for A.Y. 2017-18 on 26.10.2017 declaring a total income of Rs. 8,41,600/-. The case of the said company was selected ....

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....63 of the Act is not valid since the ld. PCIT has issued show cause notice u/s 263 of the Act in the name of the non-existent company which has already merged with the assessee company. The Ld. AR submitted that the notice u/s 263 of the Act dated 08.09.2021 has been issued in the name of merged company, M/s. Sri Ram Financial consultants Pvt. Ltd. which stood merged with the assessee M/s. Bbigplas Poly Pvt. Ltd. by the order dated 23.01.2019 passed by the NCLT and thus the notice issued in the name of non-existent company is invalid notice and nullity in the eyes of law. The Ld. AR submitted that the revisionary proceedings initiated in the name of non-existent company are invalid and void ab-initio and so is the order passed by the PCIT u....

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....rder dated 23.01.2019.Thus the assessee has not challenged the assessment proceedings in the name of non-existent company. The Ld. AR, though admitting that the assessee has informed the AO regarding the merger vide communication dated 25.10.2019 filed with the AO on 06.11.2019 which was part of the records before the AO, however strongly opposed the contentions and arguments of the assessee that the revisionary jurisdiction exercised by the ld PCIT is incurable and is a substantive illegality which goes to the root of the matter. The ld DR contended that the revisionary proceedings as well as the order framed u/s 263 of the Act suffer from the vice of procedural defects which can be rectified if the matter is restored to the file of the ld....

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.... assessee company at its given address. There is no dispute as to that communication by the assessee to the AO which is part of the assessment records. Now the issue before us is whether the proceedings initiated in the name of M/s. Sri Ram Financial Consultants Pvt. Ltd. a non-existent company vide show cause notice issued u/s 263 of the Act dated 08.09.2021 are valid proceedings or suffers from the vice of illegality or this is just a curable procedural mistake on the part of the ld PCIT while exercising his jurisdiction u/s 263 of the Act. Considering the facts as placed before us vis-a-vis the provisions of the Act including that of section 292B of the Act and the various decisions cited before us , we are certainly of the considered op....