INCOME TAX ACT, 1961

Section 170

Liability in special cases - Amalgamation of assessee company with other company - Validity of assessment -

Assessee had indicated that it underwent an entity change inasmuch as merger and amalgamation had been approved by Court. Apparently, AO took note of this development but instead of completing the assessment in hands and in name of amalgamated or merged entity, it proceeded to complete the separate assessment in name of (by then) non-existent entity. Revenue urged in support of its appeal that distinguishing feature of this case was that after repeated remand, AO completed assessment after noticing that the matter had been centralized under section 127 and further taken care to mention name of merged or amalgamated entity. Held: The rationale for holding that even section 292B is in applicable in all these cases consistently was that once corporate entity was merged with another, i.e., transferee corporation or entity, assessment had to be completed in latter's hands. Revenue despite being intimated did not complete the assessment in a composite manner in the hands of amalgamated entity and persisted in completing a separate assessment order in respect of an entity which was not in existence.

REFERRED : CIT v. Dimension Apparels (P) Ltd. (2015) 370 ITR 288 (Delhi) : 2014 TaxPub(DT) 4172 (Del-HC) Spice Enfotainment Ltd. v. CIT [IT Appeal No. 475 of 2011] : 2012 TaxPub(EX) 723 (Del) CIT v. Vived Marketing Servicing (P) Ltd. [IT Appeal No. 273 of 2009]

FAVOUR : In assessee's favour

A.Y. :

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