Genpact India (P) Ltd. v. DCIT [ITA No. 583/Del/2020, dt. 23-7-2020] : 2020 TaxPub(DT) 3022 (Del.-Trib.)

Assessment in the hands of a non-existent entity

Facts:

Assessee Genpact India was merged with Genpact India Private Limited thru a court approved merger. The department sought to tax assessee Rs. 2,625 crores as consideration paid for a buyback under section 115QA which arose under a court approved re-organisation scheme under section 391 of Companies Act, 1956. Assessment order was framed by the revenue on the erstwhile entity Genpact India. Commissioner (Appeals) upheld the views of assessing officer. Assessee claimed that the assessment order itself was void and invalid as it was on a non-existent person.

Held in favour of the assessee that the order of assessment was void as it was issued on a non-existent assessee.

Editorial Note: The facts of the whole ground of Rs. 2,625 crores if it was known would have made it into an even better high pitched assessment.