TaxTMI 
TaxTMI 
2026 (8) TMI 685
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....dated order. 3. During the hearing, the learned Authorised Representative ("learned AR") submitted that for the assessment years 2011-12 to 2013-14 and 2015-16, the assessment orders were passed on a non-existent entity, and therefore, the same are void ab initio. The assessee has raised identical grounds in all these appeals, raising the jurisdictional issue on the aforesaid aspect, and the same are reproduced as follows for ready reference: - "2. Grounds with regard to order passed in the name of a non-existing entity a) The order of assessment is void-ab-initio for the reason that the order was passed in the name of M/s. Cyberstar Infocom Pvt. Ltd. whereas the entity was converted into a Limited Liability Partnership as on the date of order of assessment which fact was on the records of the Department under the facts of the case. b) The learned CIT(A) failed to appreciate that the order passed in the name of a non-existent company is illegal and cannot be treated as a mere procedural error curable under section 292B on the facts of the case." 4. The brief facts of the case pertaining to this issue, as emanating from the record, are: M/s. Cybersta....
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....in the status of the assessee from a Private Limited Company to an LLP. The learned CIT(A), vide impugned order placing reliance upon the decision of the Hon'ble Supreme Court in Sky Light Hospitality LLP vs. ACIT, reported in (2018) 303 CTR 130 (SC), held that the assessment proceedings cannot be terminated on the basis that the company cease to exist as mere conversion into LLP would not invalidate the assessment proceedings and wrong name mentioned is merely a clerical error, which could be corrected under section 292B of the Act. Accordingly, the learned CIT(A) dismissed the specific ground raised by the assessee on this issue. Being aggrieved, the assessee is in appeal before us. 6. During the hearing, the learned AR by placing reliance upon the decision of the Hon'ble Supreme Court in PCIT vs. Maruti Suzuki India Limited, reported in (2019) 416 ITR 613 (SC), submitted that where the erstwhile entity was converted into an LLP and thereby lost its legal existence, assessment order passed subsequently in the name of non-existent entity is a jurisdictional defect, which cannot be cured under section 292B of the Act. The learned AR submitted that as for the assessment years 201....
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....ceedings under section 143(3) of the Act were also concluded in some of these years. Subsequently, on the basis of the information received that the assessee has been found to be an "assessee in default" under section 201(1) of the Act, reassessment proceedings under section 147 of the Act were initiated. In the present case, it is an undisputed fact that till the issuance of notice under section 148 of the Act, the assessee was running its business as a Private Limited Company. On 27.04.2018, pursuant to an application by the assessee, it was converted from a Private Limited Company to an LLP. From the perusal of the documents placed on record, we find that a specific intimation in this regard was made by the assessee vide its letter dated 28.05.2018, which was filed before DCIT, Circle - 2(1)(1), Bangalore, on 31.05.2018. Accordingly, the assessee requested its Jurisdictional AO to take note of the change in the status of the assessee from a Private Limited Company to an LLP. We find that along with the said letter, the assessee also furnished a Certificate of Registration on Conversion issued by the Ministry of Corporate Affairs, Government of India. We find that despite the spe....
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...., we find that in the facts of that case, no intimation regarding the fact of amalgamation was filed before the Revenue and the taxpayer in that case also suppressed the fact of amalgamation in the return filed under section 153A of the Act post-amalgamation. From the careful perusal of the aforesaid decision, we find that the Hon'ble Supreme Court also took into consideration the conduct of the taxpayer before all forums, commencing from the date of the search, consistently representing itself as the assessee. Thus, in these peculiar facts, the Hon'ble Supreme Court in Mahagun Realtors Private Limited (supra) decided the issue against the taxpayer. However, in the present case, as noted in the foregoing paragraphs, soon after the conversion of the Private Limited Company into LLP on 27.04.2018, the assessee filed a letter on 31.05.2018, intimating the fact of conversion and also requested the Jurisdictional AO to take the change in status on record. In the present case, no material has been brought on record before us to controvert the aforesaid factual position. Thus, we are of the considered view that the decision of the Hon'ble Supreme Court in Mahagun Realtors Private Limited ....