Section 271 of Income Tax Act, 1961— Penalty u/s 271(1)(c)— In the instant case, appeal has been filed by assessee against the order passed by CIT(A).

The assessee submitted that AO has passed the penalty order in the case of amalgamated company Padampat Gopal Krishna Ramapati Organisation Ltd. and not in the case of the assessee company; hence the same is not a valid order. He submitted that amalgamation took place on 14.12.2007 which was not only on record but also AO was fully aware of such amalgamation.

Held that— Such an order is definitely an illegal order and it is not a procedural irregularity which can be cured u/s 292B. Hence order passed on amalgamated entity which ceases to exist is a nullity. Such an illegality cannot be cured on the ground that assessee participation in the proceedings as there cannot operate as an estoppel against law. Accordingly, impugned penalty order is quashed.[V3S INFRATECH LTD., (AMALGMATED COMPANY OF PADAMPAT GOPAL KRISHNA RAMAPATI ORGANISATION LTD.) VERSUS DCIT, CENTRAL CIRCLE-32, NEW DELHI.] [2019] 17 ITCD Online (9) [ITAT DELHI]