In Brief
Mahagun Realtors (P) Ltd. amalgamated with Mahagun India (P) Ltd. effective 1 April 2006 but formally sanctioned in May 2007. Tax authorities issued an assessment for AY 2006-07 in the name of the transferor (defunct) company. The assessee challenged the assessment as void, arguing a non-existent entity cannot be assessed. The High Court and ITAT agreed. The Supreme Court reversed, holding that while the transferor company's corporate existence ceases upon amalgamation, the assessment is not necessarily void. The Court distinguished the facts: here, the assessee itself suppressed the amalgamation in its return, filed all correspondence in the transferor's name, and actively participated in proceedings. The assessment order named both companies and treated it as relating to the transferee through the amalgamation scheme. The matter is remitted to the tribunal for merit-based decision.
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