Section 148 of Income Tax Act – re-assessment notice to the non-existing company
As per NCLT’s order dated 27.4.2020, City Corporation Limited, Pune, engaged in construction and developing infrastructure facilities, was merged with its wholly owned subsidiary “Amanora Future Tower Pvt Ltd” (AFTPL) with effect from 1.4.2018. Thus, AFPTL became non-existing company.
This amalgamation was informed to the Income Tax Authority on 27.4.2020.
On 31.3.2023, the Income Tax Department issued a notice under Section 148(1) of the IT Act to reopen the case.
HELD that the issuance of a notice to the and in the name of non-existing company despite knowledge is substantive illegality and such a fatal flaw could neither be corrected nor rectified.
Judgment dated 29.1.2025 of the High Court of Bombay (AS) in Writ Petition No.6075 of 2023 of the City Corporation Limited Vs. Assistant Commissioner of Income Tax Circle and others with connected matters
