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Notice U/S 148 cannot be issued to non existing entities: HC
Orbit Projects Private Limited Vs ITO (WPA 3814 of 2023)
Facts:
- Orbit Projects Private Limited, the petitioner has challenged the impugned notice under Section 148A(b) of the Income Tax Act, 1961 dated 27th May 2022, relating to the assessment year 2015-16 on the ground that the same has been issued on the name of the non-existing entity and which has already been amalgamated on 16th September 2019 with retrospective effect from 1st April 2018.
- Ld Judge came to know that even though he had quashed the earlier notice u/s 148 issued in the name of Swastik promoters Pvt ltd (a company which had merged with the petitioner in the year 2019), a fresh notice u/s 148 was issued
Hon Calcutta HC held as below:
- The conduct of the AO amounted to contumacious and total non application of mind.
- Thus not only the notice u/s 148 for AY 2015-16 be quashed, a cost of Rs 20000/- be imposed, to be recovered from the salary of the AO and to be paid to the petitioner.
- The order be communicated to the Pr CCIT, West Bengal and Sikkim for taking note of the order and affairs going on in the department.
