· Suzuki Powertrain India Ltd. filed its return on 28.11.2011, which was processed u/s 143(1) of the Act. Thereafter, the case was selected for scrutiny.
· On 29.01.2013, the High Court passed an order approving the scheme of amalgamation, by which Suzuki Powertrain India Ltd. was amalgamated with Maruti Suzuki India Ltd. with effect from 01.04.2012.
· Thereafter, AO passed the assessment order u/s 143(3) read with section 144C of the Act on 29.12.2015, in which the name of assessee was shown as “M/s Suzuki Powertrain India Ltd. (Amalgamated with M/s Maruti Suzuki India Ltd.)”.
· Assessee filed an appeal before ITAT urging that the order passed was without proper jurisdiction, as it had been passed in the name of an entity that ceased to exist on the date of passing the order. ITAT accepted the plea of assessee.
· Before Hon’ble High Court, it was argued on behalf of the Revenue that since the assessee had participated in the assessment fully and raised no objection during the course of proceedings, the defect was a curable one, as per the provisions of section 292B of the Act.
· The Court observed that similar arguments were raised by the Revenue in the case of Spice Infotainment Ltd. v. CIT [2011] 247 CTR 500, wherein an identical issue was decided in the favour of assessee.
· The Court, therefore, concluded that once it is found that the assessment is framed in the name of a non-existent entity, it does not remain a procedural irregularity of the nature which could be cured by invoking the provisions of section 292B of the Act.
· Therefore, the assessment order passed by the AO was quashed by the Hon’ble High Court.
For further reading, refer the attachment.
Further Reading