📰 𝗞𝗮𝗿𝗻𝗮𝘁𝗮𝗸𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗥𝗲𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝗡𝗼𝘁𝗶𝗰𝗲 𝘁𝗼 𝗡𝗼𝗻-𝗘𝘅𝗶𝘀𝘁𝗶𝗻𝗴 𝗘𝗻𝘁𝗶𝘁𝘆 𝗶𝘀 𝗜𝗻𝘃𝗮𝗹𝗶𝗱 📢 Justice S. Sunil Dutt Yadav observed, "The notice under Section 148A(b) of the Act was issued on February 28, 2024,

with respect to the assessment year 2020–21. The scheme of amalgamation has fixed the appointed date as April 1, 2019, and the entity to which notice is issued is deemed not to be in existence."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Informatica Business Solutions Private Limited vs. ACIT 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: Writ Petition No. 17300 OF 2024 (T-IT)

𝗜𝘀𝘀𝘂𝗲: A reassessment notice under Section 148A(b) was issued to M/s. Allsight Software India Private Limited, which had ceased to exist due to an approved scheme of amalgamation effective from April 1, 2019.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The petitioner questioned the validity of the reassessment notice and the order passed under Section 148A(d), arguing that the notice was issued to a non-existing entity.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Karnataka High Court ruled that issuing a reassessment notice to a non-existing entity is legally untenable. The court quashed the order and the notice, allowing the authorities to examine the contentions on merits,

including the income declared in the name of the petitioner after the amalgamation. The court also reserved the department's right to take necessary action as permitted by law regarding the subject matter of the notice under Section 148A(b).

📜 This ruling emphasizes that reassessment notices must be issued to legally existing entities, and invalid notices to non-existent entities due to amalgamation or other reasons will not be upheld. #arr4nirc #KarnatakaHighCourt #IncomeTax #LegalUpdate