Delhi High Court
Jindal Exports And Imports ... vs Deputy Commissioner Of Income ... on 2 May, 2022
$~116 & 119
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 6900/2022 & C.M.Nos.21028-21029/2022
JINDAL EXPORTS AND IMPORTS PRIVATE LIMITED
SUCCESSOR TO JINDAL MENTHOL AND INVESTMENT
PRIVATE LIMITED ..... Petitioner
Through: Mr.Ved Kumar Jain with Mr.Nischay
Kantoor, Advocates.
versus
DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 13-1 &
ORS. ..... Respondents
Through: Mr.Sunil Agarwal, senior standing
counsel for the Revenue.
+ W.P.(C) 6916/2022 & C.M.Nos.21089-21090/2022
JINDAL EXPORT AND IMPORT PRIVATE LIMITED
(SUCCESSOR TO JINDAL MENTHOL AND INVESTMENT
PRIVATE LIMITED) ..... Petitioner
Through: Mr.Ved Kumar Jain with Mr.Nischay
Kantoor, Advocates.
versus
DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 13-1 &
ORS. ..... Respondents
Through: Mr.Sunil Agarwal, senior standing
counsel for the Revenue.
W.P.(C) Nos.6900/2022 & 6916/2022 Page 1 of 4
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:04.05.2022
18:37:37
% Date of Decision: 02nd May, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE DINESH KUMAR SHARMA
JUDGMENT
MANMOHAN, J (Oral):
1. Present writ petitions have been filed challenging the reassessment
notices dated 27th March, 2021 and 28th March, 2021 issued under Section
148 of the Income Tax Act, 1961 ['the Act'] for the assessment years 2014-
15 and 2015-16 as well as the assessment orders dated 30th March, 2022
passed under Section 147 read with Section 143(3) of the Act.
2. Learned counsel for the Petitioner states that the impugned notices as
well as the orders are void ab initio as they have been issued in the name of
'Jindal Menthol & Investment Pvt. Ltd.', a non-existing entity as it had
merged with the Petitioner company with effect from 1st April, 2013 vide
order dated 6th August, 2014 passed by this court under Section 394 of the
Companies Act, 1956. He relies on the decision of the Supreme Court
in Pr. Commissioner of Income Tax v. Maruti Suzuki India Limited,
(2019) 416 ITR 613 (SC) wherein it has been held that the issuance of a
notice to the non-existing company is a substantive illegality and not a
procedural violation.
3. Learned counsel for the Petitioner states that the income, alleged to
have escaped assessment, has been offered to tax in the hands of the
amalgamated entity and assessment orders dated 29th December, 2016 and
16th December, 2017 have been passed accepting the same.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:04.05.2022
18:37:37
4. Learned counsel for the Petitioner further states that the impugned
assessment order has been issued in violation of the principle of natural
justice as the Petitioner was not given adequate opportunity of being heard.
He points out that the Petitioner had not even been granted a day's time to
respond to the show cause notice dated 30th March, 2022. In support of his
submission, he relies on the decision of this Court in the case of Nidhi
Agrawal v. ITO W.P.(C) 6259/2022 where under similar circumstances i.e.
the time granted for replying to show cause notice was less than one day,
this Court had set aside the assessment order.
5. Issue notice.
6. Mr.Sunil Agarwal, senior standing counsel accepts notice on behalf of
the Respondents. He states that in the present case, the impugned
assessment orders have been passed in the name of 'Jindal Exports and
Imports Private Limited' (Successor to Jindal Menthol & Investment
Private Limited) i.e. the amalgamated entity. He also states that the issue as
to whether income has escaped assessment or not is a question of fact
which the petitioner can agitate in appeal proceedings.
7. Having heard learned counsel for the parties, this Court is of the view
that even if the submission of learned counsel for the Respondents is
accepted, then also the impugned assessment orders are liable to be set
aside as the Petitioner was not given adequate opportunity to file response
to the said show cause notice-cum-draft assessment orders. Consequently,
as there has been a violation of principle of natural justice, the impugned
assessment orders as well as demand and penalty notices dated 31st March,
2022 are set aside and the matter is remanded back to the Assessing Officer
for fresh adjudication.
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:04.05.2022
18:37:37
8. The petitioner shall file its response to the show cause notices dated
30th March, 2022 within two weeks. The Assessing Officer is directed to fix
the date of hearing after four weeks and decide the same by way of a
reasoned order in accordance with law after giving an opportunity of
hearing to the petitioner. The rights and contentions of all the parties are
left open.
9. In view of the above, present writ petitions and applications stand
disposed of.
MANMOHAN, J
DINESH KUMAR SHARMA, J
MAY 02, 2022
KA
Signature Not Verified
Digitally Signed By:JASWANT
SINGH RAWAT
Signing Date:04.05.2022
18:37:37
