Assistant Commissioner Of Income Tax vs Aas Research & Solutions Private Limited

PER VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), Delhi-23 [in short ‘the CIT(A)’] dated 21.04.2026, for Assessment Year 2016-17.

The appeal is time barred by 6 days. The Revenue has filed an application citing reasons causing delay in filing of appeal. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in petition which appears to be bonafide. Thus, delay of 6 days in filing of appeal is condoned and appeal is admitted for decision on merits.

Shri Ankit Kumar, appearing on behalf of the assessee at the outset submits that the assessment order dated 20.03.2022 has been passed in the name of non-existing entity. Narrating sequence of events, the Id. Counsel submits that Vishnu Portfolios P. Ltd. was amalgamated with Ventura Research and Solutions (P) Ltd. by the order of Hon’ble Delhi High Court in Company Petition no 63/2010 dated 08.10.2010. The Hon’ble High Court approved the scheme of arrangement for amalgamation of Vishnu Portfolios P. Ltd. with Ventura Research and Solutions (P) Ltd. vide order dated 08.10.2010 (supra). The Assessing Officer (AO) reopened the assessment in the case of Vishnu Portfolios P. Ltd. and issued notice u/s.148 of the Act on 31.03.2021. Since, on the date of issuance of notice, Vishnu Portfolios P. Ltd. did not exist neither the said notice was ever served on the successor of asssessee, therefore, none appeared in assessment proceedings. Subsequently, AAS Research and Solutions P. Ltd. (formerly known as Ventura Research and Solutions (P) Ltd.), the amalgamated company filed appeal before the CIT(A) assailing assessment order made in the name of Vishnu Portfolios P. Ltd. inter alia assailing validity of assessment order in the name of non-existing entity. The CIT(A) vide impugned order held the assessment order dated 20.03.2022 was illegal and quashed the same, as the assessment was framed in the name of non-existing entity. The ld. Counsel vehemently supported the impugned order and prayed for dismissing appeal of the Department.

Shri Manoj Kumar, representing the department prayed for reversing findings of the CIT(A) and upholding the assessment order. The ld. DR submits that the assessee never informed the AO regarding amalgamation of Vishnu Portfolios P. Ltd. with Ventura Research and Solutions (P) Ltd.

Both sides heard, orders of the lower authorities examined. The facts narrated by ld. Counsel for the assessee are not in dispute. Thus, from the facts on record it is evident that the assessment order has been passed in the name of non-existing entity. On the date of issuance of notice u/s.148 of the Act i.e. 31.03.2021 M/s. Vishnu Portfolios P. Ltd. was not in existence. Therefore, the said notice and the subsequent proceedings arising therefrom are void ab initio. Hence, the same are liable to be quashed. It is now a settled legal position that any statuary notice issued in the name of a non-existing entity and the proceedings arising from said notice are null and void. [RE: Pr. CIT v. Maruti Suzuki India Ltd., 107 taxmann.com 375 (SC)].

Thus, in light of above undisputed facts and the settled legal position, we find no infirmity in the order of CIT(A), hence, the same is upheld.

In the result, appeal of the Revenue is dismissed being devoid of any merit.