In Brief
The Supreme Court dismissed the Revenue's appeal challenging the quashing of an assessment order passed in the name of Suzuki Powertrain India Limited (SPIL), an entity that ceased to exist following its amalgamation with Maruti Suzuki India Limited (MSIL). The key issue was whether an assessment issued against a non-existent amalgamating company constitutes a void ab initio proceeding or merely a procedural defect. The Court held that once an approved scheme of amalgamation takes effect, the amalgamating company loses its legal existence and cannot be assessed. A jurisdictional notice issued to a non-existent entity is fundamentally invalid and cannot be cured, even if the successor company participated in proceedings. The Court emphasised the importance of consistency and certainty in tax litigation, following its earlier decision in a parallel assessment year.
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