The Calcutta High Court has quashed a re-assessment notice under section 148 of the Income Tax Act, 1961 against an amalgamated Company since the same was non-existent and the income tax department had knowledge about the process.
The petitioner, M/s SMJ Eximp Limited challenged a notice under Section 148 of the Income Tax Act, 1961 and impugned assessment order under Section 147 read with Section 144 of the Income Tax Act, 1961 on the ground that the noticee company is no more in existence and it has already been amalgamated with effect from 23rd December, 2005 by the order of the High Court, Calcutta, dated December 22, 2005 and the respondent department was intimated on the amalgamation of the noticee company on 13th January, 2009.
The counsel for the assessee, Mr. Avra Mazumder contended in spite of intimation of the fact that the assessee is not existing, still respondent is proceeding with the impugned reassessment proceeding and submits that the whole proceeding and the impugned notice and assessment order are bad and not sustainable in law against the non-existing company.
Quashing the notice, Justice Md. Nizamuddin held that “Considering the submissions of the parties, I am of the view that the impugned notice dated 30th March, 2021 (Annexure P-3 to the writ petition) and assessment order dated March 16, 2022 (Annexure P-4 to the writ petition) are not tenable in the eye of law and all further steps pursuant to the said impugned notice also are not tenable in the eye of law. This writ petition is allowed and the impugned notice is quashed solely on the ground that the impugned notice was issued in the name of non-existing company in spite of revenue having notice and knowledge of non-existence of such company.”
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