The High Court of Bombay withdrew the review proceedings hostile to an unreal entity regardless of active PAN
Case No.: Writ Petition No.3034 Of 2022
Case Title: Diversey India Hygiene Private Limited Versus ACIT
CORAM : DR. NEELA GOKHALE, J., K. R. SHRIRAM, J
Judgement Dated: 8th November 2023
Introduction
The high court at Bombay had canceled the review proceedings against unreal entities regardless of the active pan.
Facts of the case
The assessed standed against the review of notice on the ground that all notice had been issued to an unreal entity Diversey India Private Limited got amalgamated with Petitioner with effect from 1st April 2015
that letter dated 12th May 2016 was addressed to the Assessing Officer (“AO”) of DIPL and Principal Commissioner intimating about the amalgamation and an assessment order dated 1st March 2019 for AY 2016-17 under Section 143(3) read with Section 147 of the Act in the case of Petitioner has been passed where the amalgamation has been referred to and discussed.
It is stated by the respondent that the amalgamation of notice with Petitioner has been admitted and that the amalgamation was also intimated to the Department on 12th May 2016. But the defense taken is for AY 2012-13 and AY 2013-14 when the notices under Section 148 of the Act were served, The Petitioner did not protest and participated in the re-assessment proceedings. It is also stated that the PAN of the noticee was not deactivated.
The petitioner pointed out that a notice has been provided and an evaluation order if any passed in the name of the amalgamating company that has lost its existence post-amalgamation is without jurisdiction and bad in law and thus liable to be set aside.
Analysis of the court
Justice K.R Shriram and Justice Neela Gokhale Contended that PAN was not deactivated, which would not help the revenue because there could be cases relating to various years when the company was in existence, and it is possible those PAN numbers are picked up for scrutiny or for the issuance of a refund. That, in our view, will not be a sanction for the Department to issue notices to a non-existing entity, particularly when they were aware that the entity was not in existence.
The above-mentioned writ petition has been disposed of by canceling the review proceeding notice.
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Written by
Kaulav Roy Chowdhury