The Calcutta High Court in the case S. K. Finserve Private Limited Vs Assistant Commissioner of Income Tax observed and has quashed the income tax notice being issued in the name of a non-existing company, in spite of the department who is having notice and any kind of knowledge of non-existence of the company.
The Single judge bench headed by Justice Md. Nizamuddin observed in the case and has issued notice in the name of the company, which has already been amalgamated on 12.12.2016 with effect from 01.04.2015 and that the department has been intimated about this amalgamation and the same being the matter on record and in the eye of law, such a notice issued in the name of a non-existing company is not tenable.
It has also been challenged by the petitioner before the court that the notice which is issued dated 27.07.2022, wherein relating to assessment year 2013–2014 under Section 148 of the Income Tax Act of 1961, which being a transferor company.
It has also been ordered by the petitioner for amalgamating one Takshasila Gruh Nirman (being subsequently named Takshashila Realties Pvt. Ltd.). The said scheme of amalgamation has been sanctioned by the Court, wherein it has been ordered to the respective petitioners to be amalgamated into Takshashila Gruh Nirman (being subsequently named Takshashila Realities Pvt. Ltd.) with the effect from 01.04.2010.
It has also been contended by the petitioner that the said notice has been issued in the name of the company and the same has already been amalgamated as of 12.12.2016 with effect from 01.04.2015. Therefore, the department has been intimated about this amalgamation, which being the matter of record and for registering a non-existing company is not tenable in the eye of the law.
It has also been held by the court that the notices could not be sustained which were issued against the non-existent company and the same deserved to be quashed and set aside by the court.
