TaxTMI 
TaxTMI 
2026 (3) TMI 485
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....15 respectively, passed under section 250 of the Income Tax Act, 1961 (hereinafter referred as 'the Act') arising out of the assessment order passed u/s 143(3) r.w.s. 147 of the Act, both dt. 26.05.2023. 2. Since both the appeals are having common grounds therefore, they are taken together and decided by a common order. 3. At the outset it is observed that the assessee in Ground of appeal No. 3 has challenged the action of the AO in completing the assessment in the name of non-existent entity. 4. Before us, ld. AR for the assessee submits that the assessee in terms of the order of Hon'ble National Company Law Tribunal, Allahabad Bench Dated 21.03.2018 stood amalgamated with its holding company namely M/s Ace Infracity Developers Pv....
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....ion to the business otherwise than on death. It reads as under- 170. "Succession to business otherwise than on death.- (1) Where a person carrying on any business or profession (such person hereinafter in this section being referred to as the predecessor) has been succeeded therein by any other person (hereinafter in this section referred to as the successor) who continues to carry on that business or profession, (a) the predecessor shall be assessed in respect of the income of the previous year in which the succession took place up to the date of succession; (b) the successor shall be assessed in respect of the income of the previous year after the date of succession. (2) Notwithstanding anythin....
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....r the purposes of this section, 'income' includes any gain accruing from the transfer, in any manner whatsoever, of the business or profession as a result of the succession." 8. As per section 170(2) when a business or profession carried on by one person is succeeded by another person who continues to carry on that business, the predecessor shall be assessed in respect of the income up to the date of such succession and thereafter the successor must be assessed in respect of income of the such person. In our opinion, provision of section 170 would be squarely applicable in respect of the case of amalgamation. By the process of amalgamation, the business which was being carried on by the amalgamating company is succeeded by the am....
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.... assessment to be invalid. 10. It is also a matter of fact that necessary changes to the effect of Amalgamation in Company Master data as per MCA records were also made and the status had been changed as "Amalgamated" at the MCA Portal much earlier than the issue of notice by the AO u/s 148 for both the assessment years. 11. The Hon'ble Supreme Court in the case of Principal Commissioner of Income Tax, New Delhi vs. Maruti Suzuki India Ltd. reported in [2019] 107 taxmann.com 375 (SC) has been held as under: "Section 170, read with section 2928, of the Income-tax Act, 1961 Succession to business otherwise than on death (Validity of assessment) -Assessment year 2012-13 Whether issuance of jurisdictional notice and assessmen....
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.... 6 and 7] [In favour of assessee)" 13. The Co-ordinate Bench of ITAT, Delhi in the case of Erstwhile United Bank of India now Punjab National Bank, New Delhi vs. CIT reported in [2025] 172 taxmann.com 861 (Delhi - Trib.) has held as under: "Section 170(2) provides that where the predecessor cannot be found, "the assessment of the income of the previous year in which the succession took place up to the date of the succession and of the previous year preceding that year shall be made on the successor in like manner and to the same extent as it would have been made on the predecessor." In the instant case, despite being aware of the amalgamation of United Bank of India with Punjab National Bank, the Assessing Officer proceeded to m....