Facts of the Case

  • The appellant, Varun Beverages Limited, filed appeals on behalf of Varun Beverages (International) Limited, which had been amalgamated with it.
  • The dispute arose from a common order of the Income Tax Appellate Tribunal dated 25.05.2018.
  • The case pertained to Assessment Years 2008-09, 2009-10, 2010-11, and 2012-13.
  • The Tribunal had not decided the matter on merits but remanded the case to the Commissioner of Income Tax (Appeals).
  • The issue included whether the amalgamation order was communicated to the Assessing Officer and whether the assessment was made in the wrong name.

 

Issues Involved

  1. Whether an assessment made in the name of an amalgamated (non-existent) entity is valid.
  2. Whether such defect can be cured under Section 292B of the Income Tax Act, 1961.
  3. Whether the Tribunal was justified in remanding the matter without adjudicating on merits.

 

Petitioner’s Arguments

  • The appellant-assessee challenged the assessment and raised objections on merits before the Tribunal.
  • It was contended that the assessment proceedings suffered from legal infirmity due to being conducted in the wrong name (post-amalgamation).
  • The assessee sought adjudication on substantive issues rather than remand.

 

Respondent’s Arguments

  • The Revenue supported the Tribunal’s order of remand.
  • It was contended that the first appellate authority (CIT(A)) should examine:
    • Whether the amalgamation was duly notified to the Assessing Officer
    • Applicability of Section 292B to cure the defect
  • The Revenue argued that no final decision on merits had yet been taken, hence no interference was required.

 

Court’s Findings / Order

  • The Delhi High Court held that:
    • The Tribunal’s order did not decide any issue on merits and merely remanded the matter.
    • Therefore, no interference was warranted at this stage.
  • The Court noted that:
    • The issue of assessment in wrong name and Section 292B applicability is to be decided by the CIT(A).
    • The assessee has liberty to raise all grounds before the appellate authority.
  • Upon request of the appellant, the appeals were:
    Dismissed as withdrawn

 

Important Clarification by Court

  • The Court expressly clarified that:
     No observations were made on the merits of the case.


Link to download the order -https://delhihighcourt.nic.in/app/case_number_pdf/2018:DHC:8326-DB/SKN04122018ITA13822018_160826.pdf

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