TaxTMI 
TaxTMI 
2026 (7) TMI 1308
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....25 for the Assessment Year 2018-19 arising out of the order passed under section 143(3) of the Income tax Act, 1961, dated 20.04.2021. 2. Brief facts of the case are assessee M/s. Syndicate Bank is a public sector banking company, filed its return of income on 21.10.2018 declaring Nil income but admitting a loss of Rs. 5058,60,79,707/- and claimed a refund of Rs. 757,26,90,760/-. Subsequently, the case was selected for scrutiny under Computer-Assisted Scrutiny Selection (CASS) and statutory notices under sections 143(2) and 142(1) of the Act was issued and served on the assessee. The assessee filed its response through ITBA module. After examining the submissions made by the assessee, the learned Assessing Officer [in short 'AO'] made th....
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....ider the amalgamation but framed the assessment in the name of the Syndicate Bank which has become non-existent as on the date of the Assessment Order. He further submitted that the learned AO has taken the address of the assessee which is situated in the premises of amalgamating company however the name of the assessee is wrongly taken as Syndicate Bank instead of Canara Bank. He referred to the scheme of amalgamation notified by the gazette notification dated 04.03.2020, where in clause 9 it is clearly stated that any proceedings against the transferor bank (Syndicate Bank) before any Court or Tribunal or any other authority, the same shall not abate. He also submitted that as per the scheme any suit, appeal or other proceedings may be co....
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....ade on non-existing entity is quashed as void ab initio". He therefore prayed for quashing the Assessment Order as it is passed on entity which was non-existing at the time of framing the assessment. 6. Per contra, the learned Departmental Representative [in short 'DR'] submitted that as per the notified scheme of amalgamation immediately before the commencement of the scheme any cause of action, suit, decrees, recovery certificate or appeals or other proceedings or whatever nature in relation to any business shall not in any way prejudicially affected by reason of the transfer of the undertaking. He submitted that since the notice under section 143(2) of the Act was issued prior to amalgamation, the Assessment Order framed in the name o....
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....he assessee about succession of the assessee company, then such defect cannot be cured under the provisions of section 292B of the Act The case relied on by the learned AR in the case of Maruti Suzuki India Ltd., (supra), it was clearly held that where Assessment Order passed in the name of and against the juristic person which has ceased to exist and stood dissolved as per the provisions of Companies Act, assessment order in the name of the non-existing person hence becomes void and illegal. The Hon'ble High Court of Delhi in the case of Spice Entertainment held as follows: "20. In Spice Entertainment, (supra) a Division Bench of the Delhi High Court dealt with the question as to whether an assessment in the name of a company whic....
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....Mere participation by the appellant would be of no effect as there is no estoppel against law. 12. Once it is found that assessment is framed in the name of non-existing entity, it does not remain a procedural irregularity of the nature which could be cured by invoking the provisions of Section 292B of the Act." 8. The Hon'ble High Court of Delhi, following the decision in the case of Spice Entertainment (supra) under similar circumstances quashed the Assessment Orders framed in the name of amalgamating company in (i) Dimension Apparels, (ii) Micron Steels, (iii) Micra India. 9. Similarly in the case of Reliance Industries Ltd., Vs. P. L. Roongta, the Hon'ble High Court of Bombay, under similar circ....