Calcutta HC Quashes Assessment Notice Issued to a Non-Existing Entity.

Imagine you were a private limited company that's been converted into an LLP.

You've done your due diligence, informed the Income Tax Authority about your new status, and even received an assessment order for the LLP.

But then, out of the blue, you receive an assessment order and notice, under Section 148 (of Income Tax Act, 1961), for the assessment year 2015-16, issued in the name of your old, non-existing company.

That's exactly what happened to Viewpoint Marketing Pvt. Ltd., now known as Virender Kumar and Sons Jewellers LLP.

The Calcutta High Court, hearing the case, found the order unsustainable in law and quashed it, providing relief to the petitioner.

However, the court also clarified that this wouldn't prevent the Income Tax Authority from issuing any fresh notice under the law.

Remember, the devil is in the details, especially when it comes to legal and tax matters. Always ensure that all relevant authorities are updated about any changes in your company's status to avoid such complications.

Heard learned counsel appearing for the parties.

Affidavit of service filed in Court be kept with the records.

By this writ petition, petitioner has challenged the impugned order

dated 25th July, 2022 and notice dated 25th July, 2022 relating to

assessment year 2015-16, under Section 148 (of Income Tax Act, 1961)

which has been issued in the name of Viewpoint Marketing Pvt. Ltd., a

private limited company which according to the petitioner is, non-existing

entity since it has already been converted as LLP (Virender Kumar and Sons

Jewellers LLP) which identification No. AAI-3504 under the LLP Act, 2008,

with effect from 23rd January, 2017 and this fact of conversion was already

intimated to the respondent Income Tax Authority as appears from the

assessment order dated 18th October, 2019 passed in the case of the LLPVirender Kumar and Sons Jewellers LLP for the assessment year 2017-18

being annexure P-3 to the writ petition at page 36 as also by letter dated

22nd July, 2019 which appears at page 41 being annexure P-4 to the writ

petition and petitioner submits that in view of this admitted fact

substantiated by record, the aforesaid impugned order is not sustainable in

law and is liable to be quashed.

Learned advocate appearing for the respondent Income Tax Authority

is not in a position to contradict the aforesaid allegation and the submission of the petitioner which is supported by records.

Considering the submissions of the parties, this writ petition being

WPO 1108 of 2023 is disposed of by quashing the impugned order dated

25th July, 2022 being annexure P-7 to the writ petition and the impugned

notice dated 25th July, 2022 being annexure P-7 to the writ petition.

However, dismissal of this writ petition will not prevent the Income

Tax Authority concerned to issue any fresh notice, in the matter in

accordance with law.

With these observations and directions, this writ petition stands

disposed of.

(MD. NIZAMUDDIN, J.)