Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act
Kapil Dhyani
16 Nov 2024 11:03 AM IST
The Calcutta High Court has refused to apply Section 292B of the Income Tax Act, 1961 to a scrutiny notice issued in an amalgamating company's name, despite the Assessing Officer being aware about the company's amalgamation. Section 292-B provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in...
The Calcutta High Court has refused to apply Section 292B of the Income Tax Act, 1961 to a scrutiny notice issued in an amalgamating company's name, despite the Assessing Officer being aware about the company's amalgamation.
Section 292-B provides that no notice or assessment or any proceedings can be deemed to be invalid merely for the reason of any mistake, defect or omission in such notice, assessment or other proceedings.
In the case at hand, a division bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya noted that “the fact of amalgamation was well within the knowledge of the assessing officer.”
It thus dismissed the Department's appeal which sought to contend that notice issued in the company's previous name was a curable defect.
Department claimed that neither the assessee nor the amalgamating company informed the Assessing Officer about the scheme of amalgamation being approved by the High Court. It was thus their contention that technical defect in not issuing notice in the name of amalgamated company should not be given any weightage.
It relied on M/s. Mahagun Realtors (P) Ltd. where the assessment made in the name of amalgamating company was held to be valid by the Supreme Court, as the fact of amalgamation was suppressed from the AO.
However, the Court noted that in the reasons to believe which was appended to the notice the assessing officer has specifically referred to the details regarding the amalgamation.
“Therefore, the decision of the Hon'ble Supreme Court in PCIT Vs. Mahagun Realtors Pvt. Ltd. (supra) cannot be of any assistance to the facts and circumstances of the present case,” it held and dismissed the appeal.
Appearance: Advocate Soumen Bhattacharjee for Appellant; Advocate Amit Agarwal for Respondents
Case title: Principal Commissioner Of Income Tax Central 2 Kolkata Vs Gpt Sons Pvt Ltd
Case no.: ITAT/195/2024
