March 2023
Assessment order passed in the name of non-existing entity is null and void ab initio. The decision of SC in Mahagun Realtors (P.) Ltd cannot be interpreted to mean that even in a case where factum of amalgamation was put to the notice of the AO, still the assessment made in the name of amalgamating company i.e. non-existing company is valid in law.
61 DCIT vs. Barclays Global Service Centre Pvt Ltd (formerly Barclays Shared Services Pvt Ltd)
[TS-29-ITAT-2023(PUN)]
A.Y.: 2014-15
Date of Order: 2nd January, 2023
Assessment order passed in the name of non-existing entity is null and void ab initio. The decision of SC in Mahagun Realtors (P.) Ltd cannot be interpreted to mean that even in a case where factum of amalgamation was put to the notice of the AO, still the assessment made in the name of amalgamating company i.e. non-existing company is valid in law.
FACTS
The assessee company, engaged in the business of providing Information Technology Enabled Services (ITES) to Barclays Bank PIc, United Kingdom (BBPLC) and its affiliates, filed its return of income for the A.Y. 2014-15 declaring a total income of Rs. 1,13,02,89,902 after claiming deduction under section 10AA of the Income-tax Act, 1961 (‘the Act’). The appellant company also reported international transactions entered with its AEs. On noticing the international transactions, the AO referred the matter to the Transfer Pricing Officer (‘TPO’) for the purpose of benchmarking the international transactions. The TPO vide order dated 30th October, 2017 suggested the TP adjustment of Rs. 95,88,72,618/-. On receipt of the draft assessment order, the appellant had not chosen to file objectio
