IDP EDUCATION INDIA PRIVATE LIMITED (EARLIER KNOWN AS IDP EDUCATION EXAM SERVICES PRIVATE LIMITED),GURUGRAM V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 10(1) DELHI, DELHI

ITA 2582/DEL/2024

AI Insights

The case involves IDP Education India Pvt. Ltd., which was previously known as IDP Education Exam Services Private Ltd., appealing against the order of the Commissioner of Income-tax (Appeals), NFAC, Delhi. The appeal was initially dismissed by the NFAC on the grounds that the original entity, IDP Education Exam Services Private Ltd., was no longer in existence due to amalgamation. The Tribunal noted that the appeal was filed before the order of amalgamation was passed, and the NFAC should have considered the appeal in the name of the amalgamated entity. The Tribunal referenced several Supreme Court judgments to emphasize that the final assessment order and the appellate order should not be passed in the name of a non-existing entity but should consider the facts of amalgamation if brought to record during the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312930 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Other Referred Cases: PCIT vs. Maruti Suzuki India Ltd. (2019) 107 taxmann.com 375 (SC), PCIT vs. BMA Capfin (2018) 100 taxmann.com 330 (SC), DCIT vs. Sterlite Technologies Ltd. (2024) 158 taxmann.com 242 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: KAILASH DAN RATNOO
• Assessee Lawyers: VISHAL KALRA; A NKIT SAHNI
• Keywords: Question of law
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: C : NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2582/Del/2024 Assessment Year: 2020-21 IDP Education India Pvt. Ltd., (Earlier known as IDP Education Exam Services Private Ltd.), 4th Floor, Unit 401-405, Tower –B, Global Gateway, Sec 26, Village Sikanderpur Ghosi, District Gurugram, Haryana – 122 002. PAN: AABCI6253M Vs DCIT, Circle-10(1), Delhi. (Appellant) (Respondent) Assessee by : Shri Vishal Kalra, Advocate & Shri Ankit Sahni, Advocate Revenue by : Shri Kailash Dan Ratnoo, CIT-DR Date of Hearing : 28.04.2025 Date of Pronouncement : 30.04.2025 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Assessee against the order dated 08.02.2024 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, for short) in Appeal No.NFAC/2019-20/10181190 arising out of the appeal before it against the order dated 23.09.2022 passed u/s 143(3) r.w.s. 144B of the ITA No.2582/Del/2024 2 Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Assessment Unit, Income-tax Department (hereinafter referred to as the Ld. AO). 2. At the outset, the ld. counsel has submitted that there is a delay in filing the appeal by 43 days for which condonation application has been filed supported by an affidavit wherein the director of the appellant company has deposed that the order of the ld. CIT(A) when received on the registered e-mail was overlooked as the e-mail ended up in junk e-mails marking this message as ‘spam’. A copy of the screenshot of the e-mail was also provided. Thus, there are sufficient reasons and the delay is not of exceptional period so as to prejudice the Revenue. Accordingly, the delay is condoned and the appeal is admitted for hearing. 3. Ld. Counsel has primarily argued on ground no. 2, 2.1 and 3 and in regard to these grounds we find that the ld.CIT(A) has dismissed the appeal of the assessee in limine on the ground that IDP Education Exam Services Private Limited, which was the original assessee, is no more in existence on account of having been amalgamated into M/s IDP Education India Pvt. Ltd., the present appellant. Thereby, expecting, filing of a fresh appeal by the present appellant. 4. We find that the assessment order in this case was passed on 23.09.2022 u/s 143(3) r.w.s. 144B of the Act in the name of IDP Education Exam Services Private Limited against the same order the appeal was filed on 21.10.2022 ITA No.2582/Del/2024 3 before the NFAC. Subsequently, on 23.10.2023, the order of amalgamation was passed to be effective from 01.04.2022 for amalgamating IDP Education Exam Services Private Limited with IDP Education India Pvt. Ltd. On 02.01.2024, notice was issued by NFAC calling for fling written submissions. Subsequently, on 16.01.2024, in the response of same, the appellant filed revised Form 35 and the fact of amalgamation was brought to the notice of NFAC and a copy of amalgamation order was also filed. Consequently, this impugned order was passed by NFAC dismissing the appeal in limine on account that the company is not in existence and directed the appellant to file a separate e-appeal in the name of amalgamated entity i.e., IDP education India Private Ltd. 5. After going through the impugned order, we find that it is undisputed fact that the appeal was filed on 21.10.2022 in the name of the assessee against whom the assessment order was passed. The order of amalgamation is subsequent to the filing of the appeal filed before NFAC. The amalgamation order dated 23.10.2023 was duly brought on record by the assessee before the NFAC. That being the case, NFAC was supposed to take cognizance of the subsequent fact and consider passing the final order in the name of the amalgamated entity, IDP Education India Pvt. Ltd. ITA No.2582/Del/2024 4 6. After going through the reasons given by the NFAC relying the judgement of the Hon’ble Supreme Court in PCIT vs. Maruti Suzuki India Ltd. (2019) 107 taxmann.com 375 (SC); PCIT vs. BMA Capfin (2018) 100 taxmann.com 330 (SC); and DCIT vs. Sterlite Technologies Ltd. (2024) 158 taxmann.com 242 (SC), we are of the considered view that the aforesaid decisions are only laying down the law that the final assessment order and the order of the appellate authority should not be passed in the name of a non- existing entity. However, where during the pendency of any proceedings, the facts are brought on record of amalgamation, then, merely amendment of the title calling for amended Form No.35 would be sufficient. The ld. AR has explained that there is no provision in online portal to revise Form No.35 pursuant to merger and the e-appeal filing window is not activated in the portal of amalgamated entity i.e., IDP Education India Private Ltd.. Therefore, NFAC should have been cognizant of these factual aspects also before dismissing the appeal in limine and should have considered the manually filed revised appeal in Form No.35, during the course of appellate proceedings in the name of amalgamated company, IDP Education India Pvt. Ltd. with PAN AABCI6253M. 7. The impugned order thus cannot be sustained. Consequently, we sustain ground no. 2, 2,1 and 3 and allow the appeal of the assessee for statistical purposes and restore the appeal of the assessee before NFAC with a direction to ITA No.2582/Del/2024 5 admit the amended Form No.35 of the appellant, IDP Education India Pvt. Ltd. and proceed to decide the appeal afresh on merits, including the question of law, if any raised, with due notice of hearing to the appellant. 8. The appeal is allowed for statistical purposes. Order pronounced in the open court on 30.04.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30th April, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "