Shanti Prime Publication Pvt. Ltd.
Sec. 147 & 148 of Income Tax Act, 1961 – Reassessment – if the company has ceased to exist as a result of the approved scheme of amalgamation then in that case, the jurisdictional notice issued in its name would be fundamentally illegal and without jurisdiction.
Facts: Three companies were amalgamated with the assessee company. Petitioner company had the holding status. Notice under section 148 was issued to the one of the company that was amalgamated. Being aggrieved, assessee filed a writ petition that the company amalgamated requested for some time so as to enable it to respond to the show-cause notice.
Held, that notice under section 148 has been issued to Gayatri Integrated Services Private Limited which had long back got amalgamated with the assessee vide order dated 18th June, 2015 passed by this court and thus, it had ceased to have its own existence so as to render it amenable for the reassessment proceedings under the provisions of section 147. Moreover, the department were duly informed by the assessee about the amalgamation and despite the said factum having been brought to the notice of the revenue, statutory notice under section 148 came to be issued to Gayatri Integrated Services Private Limited for reopening the assessment on the ground that the respondent has reason to believe that income chargeable to tax for the assessment year 2012-13 has escaped the assessment within the meaning of section 147. If the company has ceased to exist as a result of the approved scheme of amalgamation then in that case, the jurisdictional notice issued in its name would be fundamentally illegal and without jurisdiction. The petition succeeds and is accordingly so allowed – GAYATRI MICRONS LTD. Vs. ASSTT. CIT [2020] 424 ITR 288 (GUJ)