Notice U/S 148 cannot be issued to non existing entities: HC

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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:

  1. 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.
  1. 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:

  1. The conduct of the AO amounted to contumacious and total non application of mind.
  1. 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.
  1. 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.
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