2026 (9) TMI 132

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....AC/S/250/2025-26/1084965211(1) arising out of the order dated 21.12.2017 u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by ITO, Circle 25(2), New Delhi for AY: 2006-07. 2. Heard and perused the records. The present appeal has been filed with a background that the return of income for AY; 2006-07 was filed by M/s HCL Infinet Ltd. (HCLIL) on 23.11.2006 thereafter vide order dated 20.03.2007 of Hon'ble Delhi High Court in terms of Scheme of Arrangement, HCL Infinet Ltd. stood merged/amalgamated with HCL Infosystems Ltd. w.e.f 01.04.2006 and thereupon HCL Infinet Ltd. stood dissolved. As for AY: 2007-08 the annual accounts and tax audit report and return of income was filed by merged entity M/s HCL In....

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....ings AO passed an assessment order in the name of HCL Infinet Ltd. and PAN of non-existing entity confirming addition qua creditors balance and allowed license fee and @ 6% turnover which has been confirmed by ld. CIT(A) but by order dated 09.04.2026 ITA No. 8055/Del/2019 the Coordinate Bench had quashed the assessment order passed in second round on the basis that the same was made on non-existing, amalgamated entity. The penalty order was however, confirmed vide impugned order dated 20.01.2026 by ld. CIT(A) with direction to re-compute and restrict the amount of penalty only to the extent of 2% of license fee. 3. Now, on hearing both sides and after perusal of records we find that at page No. 337 assessee had provided copy of notice u/....