Facts of the Case

The present appeals were filed by the assessee, Varun Beverages Limited, on behalf of Varun Beverages (International) Limited which had been amalgamated with the appellant company. The appeals arose from a common order dated 25.05.2018 passed by the Income Tax Appellate Tribunal concerning Assessment Years 2008-09, 2009-10, 2010-11, and 2012-13.

The Tribunal had not adjudicated the issues on merits but had remanded the matter to the Commissioner of Income Tax (Appeals) for reconsideration of specific legal issues.

Issues Involved

  1. Whether the amalgamation order was duly brought to the notice of the Assessing Officer.
  2. Whether the assessment was framed in the wrong name due to amalgamation.
  3. Applicability of Section 292B of the Income Tax Act, 1961 in curing defects relating to incorrect name in assessment proceedings.
  4. Whether the High Court should interfere when the Tribunal has remanded the matter without deciding on merits.

 

Petitioner’s Arguments

  • The assessee challenged the Tribunal’s order and had raised objections relating to the validity of assessment on merits.
  • It was contended that the assessment proceedings suffered from legal infirmities, particularly concerning the name of the entity post-amalgamation.
  • The assessee sought interference by the High Court against the Tribunal’s remand order.

 

Respondent’s Arguments

  • The Revenue supported the Tribunal’s order, emphasizing that no final adjudication on merits had been made.
  • It was argued that the remand to the Commissioner of Income Tax (Appeals) was appropriate for examining factual and legal aspects, including the issue of assessment in the wrong name and applicability of Section 292B.

Court’s Findings / Order

The Delhi High Court observed that:

  • The Tribunal had not adjudicated any issue on merits.
  • The matter had been rightly remanded to the Commissioner of Income Tax (Appeals) for determination of:
    • Whether the amalgamation was brought to the notice of the Assessing Officer, and
    • Whether assessment in the wrong name could be sustained in light of Section 292B.
  • The assessee was granted liberty to raise all issues before the appellate authority.

Subsequently, the appellant sought permission to withdraw the appeals.

Final Order

  • Appeals were dismissed as withdrawn.
  • The Court clarified that no observations were made on merits of the case.

 

Important Clarification

  • The High Court explicitly stated that its order does not decide any substantive issue.
  • The remand ensures that the appellate authority independently examines all legal and factual questions.
  • The applicability of Section 292B in cases of assessment in the name of a non-existent/amalgamated entity remains open for adjudication.

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

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