ACIT, New Delhi V. M/s Karamchand Appliances Pvt. Ltd (Now known as SC Johnson Products P.Ltd))), Haryana

ITA 29/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4011 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 04-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R SENAPTHY
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO.29/DEL/2016 ASSESSMENT YEAR : 2006-07 ACIT, CIRCLE-22(2), CR BUILDING, NEW DELHI. VS. KARAMCHAND APPLIANCES PVT. LTD. (NOW KNOWN AS SC JOHNSON PRODUCTS P. LTD.) 5 TH FLOOR, PLOT NO.68, SECTOR-44, GURGAON, HARYANA. PAN: AAACL3128M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K.M. GUPTA, ADVOCATE DEPARTMENT BY : SHRI S.R. SENAPTHY, SR. DR DATE OF HEARING : 24.01.2017 DATE OF PRONOUNCEMENT : 25.01.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 30.10.2015 IN RELATION TO THE ASSESSMENT YEAR 2006-07. ITA NO.29/DEL/2016 2 2. THE REVENUE IS AGGRIEVED AGAINST QUASHING THE AS SESSMENT FRAMED ON M/S KARAMCHAND APPLIANCES PVT. LTD. BY OBSERVING THAT I T STOOD MERGED WITH M/S SC JOHNSON PRODUCTS PVT. LTD.. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED RETURN DECLARING INCOME OF RS.2.28 CRORE ON 31.11.2016. ASSESSMENT U/S 143(3) WAS COMPLETED IN DECEMBER, 2008 AT AN INCOME OF RS.8.73 CRORE. THE I NSTANT PROCEEDINGS WERE INITIATED BY THE ASSESSING OFFICER BY MEANS OF NOTICE U/S 148 ON THE GROUND THAT CERTAIN INCOME ESCAPED ASSESSMENT. THIS IS HOW, TOTAL INCOME GOT COMPUTED IN THE EXTANT ASSESSMENT ORDER AT RS.10.92 CRORE. THE LD. CIT(A) QUASHED TH E ASSESSMENT BY OBSERVING THAT THE ASSESSEE GOT MERGED WITH M/S SC JOHNSON PRODUCTS PV T. LTD.. W.E.F. 01.06.2005 AND, HENCE, THE ASSESSMENT MADE IN THE NAME OF A NON-EXI STING ENTITY WAS NOT VALID. THE REVENUE HAS COME UP IN APPEAL ON THE GROUND THAT SE CTION 292B WOULD TAKE CARE OF THE MISTAKE COMMITTED BY THE ASSESSING OFFICER IN MENTI ONING THE NAME OF THE ASSESSEE. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS OBSERVED THAT M/S KARAMCHAND APPLIANCES PVT. LTD. A DMITTEDLY GOT MERGED WITH M/S SC JOHNSON PRODUCTS PVT. LTD.. W.E.F. 01.06.2005 BY ME ANS OF AN ORDER PASSED BY THE HON'BLE DELHI HIGH COURT. DURING THE COURSE OF ORI GINAL ASSESSMENT PROCEEDINGS, THE FACT OF AMALGAMATION OF THE ASSESSEE WITH M/S SC JO HNSON PRODUCTS PVT. LTD. WAS BROUGHT TO THE NOTICE OF THE ASSESSING OFFICER. HO WEVER, THE ASSESSING OFFICER PASSED THE ORDER IN THE NAME OF M/S KARAMCHAND APPLIANCES PVT. LTD. WHEN THE MATTER CA ME ITA NO.29/DEL/2016 3 UP BEFORE THE TRIBUNAL, THE ASSESSMENT WAS QUASHED ON THIS VERY GROUND. THE LD. AR SUBMITTED THAT THE ORDER PASSED BY THE TRIBUNAL HAS BEEN APPROVED BY THE HON'BLE DELHI HIGH COURT. IT IS IN THE SUBSEQUENT PROCEEDINGS TA KING PLACE BY MEANS OF NOTICE U/S 148, THAT THE ASSESSING OFFICER ONCE AGAIN COMMITTED THE SAME MISTAKE OF PASSING THE ASSESSMENT ORDER IN THE NAME OF A NON-EXISTING ASSE SSEE. SINCE THE FACTS AND CIRCUMSTANCES IN THE INSTANT PROCEEDINGS ARE SIMILA R TO THOSE OF THE PROCEEDINGS FLOWING FROM THE ORIGINAL ASSESSMENT ORDER PASSED U/S 143(3 ), WHICH HAS BEEN QUASHED ON THIS VERY GROUND, RESPECTFULLY FOLLOWING THE PRECEDENT, WE AFFIRM THE IMPUGNED ORDER QUASHING THE ASSESSMENT ORDER AS HAVING BEEN PASSED ON A NON-EXISTING PERSON. IN OUR CONSIDERED OPINION, SECTION 292B DOES NOT SUPPORT T HE REVENUES CASE AS IT IS NOT A CASE OF MISTAKE, DEFECT OR OMISSION AS REFERRED TO IN SE CTION 292B. WE, THEREFORE, UPHOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 25 .01.2 018. SD/- SD/- [BEENA A. PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 25 TH JANUARY, 2018. DK ITA NO.29/DEL/2016 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.