Usha Martin Ltd.(successor to Usha Martin Holdings Ltd. consequent to amalgamation), Kolkata V. D.C.I.T,Circle-8, Kolkata

ITA 1969/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0222 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: AAKASH AGARWAL
• Section: 143(3); 292BB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM ./I.T.A NO.1969/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2005-06) USHA MARTIN LTD. (SUCCESSOR TO USHA MARTIN HOLDINGS LTD. CONSEQUENT TO AMALGAMATION) 2A, SHAKESPEARE SARANI, KOLKATA 700 071. VS. DCIT, CIRCLE 8, KOLKATA ./ ./PAN/GIR NO.: AAACU 5371 K (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI AAKASH AGARWAL, ADVOCATE RESPONDENT BY : SHRI JAYANTA KHANRA, JCIT, SR. DR / DATE OF HEARING : 23/12/2019 /DATE OF PRONOUNCEMENT : 31/12/2019 / O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2005-06 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A)-3, KOLKATA DATED 27.02.2019 PASSED IN CASE NO. CIT(A), KOLKATA-3/10078/2008-09 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. IT IS NOTED AT THE OUTSET THAT THE INSTANT LIS INVOLVES LEGAL ISSUE OF FRAMING OF A REGULAR ASSESSMENT DATED 20.11.2007 IN THE NAME OF THE ORIGINAL ASSESSEE; M/S. USHA MARTIN HOLDINGS LTD. DESPITE THE FACT THAT IT HAD MERGED WITH THE SUCCESSOR ENTITY M/S. USHA MARTIN LTD. RELEVANT AMALGAMATION SCHEME STOOD APPROVED IN HONBLE JURISDICTIONAL HIGH COURT ON 04.05.2006 W.E.F. 01.04.2005. THE ASSESSEE HAD APPRISED THE ASSESSING OFFICER ABOUT ALL THESE DEVELOPMENTS ON 23.08.2007. IT ALSO RAISED AN ADDITIONAL GROUND TO THIS EFFECT BEFORE THE CIT(A). THE SAME STANDS DECLINED AS FOLLOWS: I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 2 I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 3 I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 4 I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 5 I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 6 3. IT IS THEREFORE CLEAR THAT THERE IS NO DISPUTE AT LEAST ON FACTS THAT THE ASSESSING OFFICER HAS INDEED FRAMED THE REGULAR ASSESSMENT ON A NON EXISTENT ENTITY ONLY. THE CIT(A) HAS QUOTED SECTION 292BB OF THE ACT THAT SUCH A DEFECT IS CURABLE. WE FIND THAT HONBLE APEX COURT LATEST JUDGEMENT IN PCIT VS MARUTI SUZUKI INDIA LTD. (2019) 107 TAXMANN.COM 375 (SC) HAS SETTLED THE LAW THAT SUCH AN ASSESSMENT FRAMED IN CASE OF A NON-EXISTENT ENTITY IS A NULLITY. THEIR LORDSHIPS HAVE ALSO CONSIDERED M/S. SKYLIGHT HOSPITALITY PVT. LTD. (SUPRA) AS WELL AS SECTION 292BB OF THE ACT. I GO BY THE VERY REASONING MUTATIS MUTANDIS TO QUASH THE IMPUGNED ASSESSMENT. ORDERED ACCORDINGLY. ALL OTHER PLEADINGS ON MERITS ARE RENDERED ACADEMIC. I.T.A NO.1969/KOL/2019 USHA MARTIN LTD. PAGE | 7 5. THIS ASSESSEES APPEAL IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 31.12.2019. SD/- (S. S. GODARA) JUDICIAL MEMBER /KOLKATA; / DATE: 31/12/2019 (BISWAJIT, SR.PS) / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - USHA MARTIN LTD. 2. THE RESPONDENT- DCIT, CIRCLE 8, KOLKATA. 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.