ELLENBARIE STEELS AND ALLIED INDUSTRIES LTD., (MERGED WITH KAMRUP ENTERPRISES LTD.,),KOLKATA V. ITO, WARD - 8(1), KOLKATA

ITA 2135/KOL/2024

AI Insights

The case involves Ellenbarie Steels and Allied Industries Ltd., which had merged with Kamrup Enterprises Ltd. on April 1, 2016, as per a Calcutta High Court order. The Income Tax Officer issued a notice under section 148 of the Income Tax Act, 1961, on July 13, 2022, to the merged entity, which no longer existed. The assessee contested the validity of this notice and the subsequent assessment order, arguing that they were issued to a non-existent entity. The Commissioner of Income Tax (Appeals) dismissed the appeal for non-prosecution, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471015 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148; 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 2135/Kol/2024 (Assessment Year 2014-15) Ellenbarie Steels And Allied Industries Ltd., (merged with Kamrup Enterprises Ltd.) 7th Floor, 113, Poddar Point, Park Street, Kolkata - 700016 [PAN: AAACE4680K] ….................................. Appellant vs. Income Tax Officer, Ward 8(1), Kolkata, Aayakar Bhawan, Chowringhee Square, Esplanace, Kolkata - 700069 ............................... Respondent Appearances by: Assessee represented by : Shri Anil Kochar, Advocate Department represented by : Shri Ankur Goyal, JCIT, Sr. DR Date of concluding the hearing : 19.03.2025 Date of pronouncing the order : 19.03.2025 O R D E R PER BENCH 1. This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2024-25/1067926597(1) dated 23.08.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2014-15. 2. Shri Anil Kochar, Advocate appeared on behalf of the assessee and Shri Ankur Goyal, Sr. DR appeared on behalf of the revenue. 2 ITA No. 2135/Kol/2024 Ellenbarie Steels And Allied Industries Ltd. (merged with Kamrup Enterprises Ltd.) 3. It was submitted by the Ld. AR that the impugned assessee Ellenbarie Steels and Allied Industries Ltd. merged with Kamrup Enterprises Ltd, w.e.f. 01.04.2016, being the effective date as per the order of the Hon’ble High Court of Calcutta vide company petition No. 519 of 2016, dated 05.09.2016. The Ld. AR has placed on record a copy of the decision of the Hon’ble jurisdictional High Court before us in which the Hon’ble High Cout has accepted the merger. It was submitted that the Ld. AO had issued notice u/s 148 on 13.07.2022, much after the date of merger. It was submitted that as the assessee did not exist when the notice u/s 148 of the Act was issued, admittedly, there was no response in the course of assessment proceedings. It was submitted that in the form of appeal before CIT(A) in the statement of facts the assessee has categorically specified that merger has taken place and with that the assessee does not exist anymore and therefore, the assessment order is illegal. However, the Ld. CIT(A) dismissed the appeal of the assessee for non-prosecution. It was a prayer that as the assessee has merged with Kamrup Enterprises Limited w.e.f. 01.04.2016, the notice issued u/s 148 of the Act on 13.07.2022 is a notice on a non-existent person and is therefore liable to be quashed as also the consequential assessment order. In reply, the Ld. Senior DR vehemently supported the order of the Ld. AO and the Ld. CIT(A). It was submitted that it was incumbent on the assessee to intimate the AO and the CIT(A) that the assessee had merged and hence did not exist. 4. We have considered the rival submission. On perusal of the facts in the present case it clearly shows that the Hon’ble Jurisdictional High Court of Calcutta has approved the merger of the impugned assessee with Kamrup Enterprises Ltd. w.e.f. 01.04.2016, therefore, on such date the existence of the impugned assessee was no more. The notice u/s 148 admittedly has been issued on 13.07.2022. Admittedly, notice has been issued much after the merger of the assessee. A perusal of the statement of facts before the Ld. CIT(A) clearly shows that the assessee has intimated about the merger. This being so, as the assessee did not exist at the time 3 ITA No. 2135/Kol/2024 Ellenbarie Steels And Allied Industries Ltd. (merged with Kamrup Enterprises Ltd.) of issuance of notice u/s 148 of the Act, notice issued on a non-existent assessee is liable to be quashed and we do so accordingly. In the result, the consequential assessment also fails. 5. In the result, appeal filed by the assessee is allowed. Order pronounced in the open court on 19.03.2025 Sd/- Sd/- (Sanjay Awashti) (George Mathan) Accountant Member Judicial Member Dated: 19.03.2025 AK, P.S. Copy of the order forwarded to: 1. Ellenbarie Steels And Allied Industries Ltd., (merged with Kamrup Enterprises Ltd.) 2. DC/AC, Circile-1, Patna 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "