Facts of the Case

As observed in the judgment (pages 2–3) , the appeals were filed by the assessee, Varun Beverages Limited, on behalf of Varun Beverages International Limited, which had been amalgamated with it.

The appeals arose from a common order passed by the Income Tax Appellate Tribunal dated 25.05.2018 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) to determine whether the amalgamation was brought to the notice of the Assessing Officer and whether the assessment was made in the wrong name.

Issues Involved

  1. Whether the assessment framed in the name of an amalgamated/non-existent entity is valid.
  2. Whether Section 292B of the Income Tax Act can cure such defect.
  3. Whether the Tribunal was justified in remanding the matter without deciding the issues on merits.
  4. Whether the High Court should interfere when no findings on merits were recorded.

Petitioner’s Arguments

  • The appellant-assessee challenged the assessment proceedings, including objections on merits before the Tribunal.
  • It was contended that the assessment suffered from legal defects, including issues relating to amalgamation and incorrect naming.
  • The assessee sought adjudication on merits instead of remand. 

Respondent’s Arguments

  • The Revenue supported the Tribunal’s order of remand.
  • It was argued that the issues, including the effect of amalgamation and applicability of Section 292B, required factual determination by the first appellate authority.

Court Order / Findings

The Delhi High Court held:

  • The Tribunal had not decided any issue on merits and had merely remanded the matter.
  • The remand was for determining:
    • Whether the amalgamation was brought to the notice of the Assessing Officer
    • Whether assessment in the wrong name is valid
    • Applicability of Section 292B
  • The assessee had liberty to raise all issues before the Commissioner of Income Tax (Appeals).
  • Since no merits were adjudicated, the High Court was not inclined to interfere.
  • Upon request of the appellant, the appeals were dismissed as withdrawn. 

Important Clarifications by the Court

  • The Court explicitly clarified that no observations were made on merits of the case.
  • All issues remain open before the Commissioner of Income Tax (Appeals).
  • The assessee retains the right to raise all legal and factual grounds before the appellate authority.

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

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