2025 (8) TMI 908

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....ispute Resolution Panel-2, (in short "Ld. CIT(DRP-2)"), Mumbai vide order dated 13.12.2016 passed for A.Y. 2012-13. 2. Before us, at the outset, the Counsel for the assessee has challenged the validity of the assessment order on the ground that the assessment was passed in this case on a non-existent entity, namely Man Turbo India Pvt. Ltd., which stood amalgamated into Man Diesel & Turbo India Pvt. Ltd., w.e.f. 01.01.2013, pursuant to the Scheme of Amalgamation sanctioned by the Hon'ble Bombay High Court vide order dated 28.03.2014. The amalgamation scheme was made effective upon filing with the Registrar of Companies on 21.05.2015. The Counsel for the assessee submitted that the intimation of amalgamation was given to the Assessing Off....

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.....2017 were passed in the name of a non-existent entity. 3. In response, Ld. DR submitted that the references to the erstwhile company were clerical in nature and thus curable under section 292B of the Act. It was further contended that since the name of the amalgamated entity appeared in the final assessment order (albeit in brackets), there was no fatal error warranting annulment of the assessment. 4. We have heard the rival contentions and perused the material on record. 5. In this case, the Counsel for the assessee has also drawn our attention to the fact that the case of the assessee is clearly covered in it's favour by the order of Hon'ble ITAT, Ahmedabad in assessee's own case in ITA No. 1319/Ahd/2018 for A.Y. 2013-14 vide or....

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....ld.DR has not in any way, either on facts or law, distinguished the said decision of the Hon'ble apex court before us. 16. However, being aware about the decision of the Hon'ble Apex Court in a subsequent decision in the case of PCIT v. Mahagun Realtors (P.) Ltd. [2022] 443 ITR 194 (SC) wherein the Apex Court has taken a contrary view on the issue, the same was confronted to both the parties during the course of hearing. To which, the ld.counsel for the assessee pointed out that the decision did not over-rule the earlier decision of the Hon'ble Apex Court in the case of Maruti Suzuki India Ltd. (supra), but in fact taking note of the said decision, in Mahagun Realtors P.Ltd.(supra) the Hon'ble apex court had distinguished the facts....

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....g that the issue raised in the additional ground by the assessee is squarely covered by the decision of the Hon'ble Apex Court in the case of Maruti Suzuki (supra) following which, we hold that the assessment order passed in the present case on a non-existent entity is an invalid assessment order, and the entire assessment framed, therefore, is directed to be quashed. 19. We further add that arguments of the ld.DR before us merit no consideration for the reason that the issue is noted to be squarely covered by the decision of the Hon'ble Apex Court in the case of Maruti Suzuki India Ltd. (supra). Even otherwise, the contentions raised by the ld.DR about the order being passed in the name of amalgamated entity despite the AO being a....

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....cted to be quashed. 22. Since we have quashed the assessment order itself on the legal issue, the adjudication on merits of the additions is a mere academic exercise and is therefore not being dealt with by us. 23. In the result, the appeal of the assessee is allowed in above terms." Further, we note that the Hon'ble Supreme Court in PCIT vs. Maruti Suzuki India Ltd. [(2019) 416 ITR 613 (SC) has categorically held that where an assessment order is passed in the name of a non-existent entity despite the Assessing Officer having been duly informed of the amalgamation, such an assessment is void and not a procedural irregularity that can be cured by invoking Section 292B. The principle laid down in Maruti Suzuki has be....