Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act

The Calcutta High Court ruled that a scrutiny notice issued in the name of an amalgamating company, despite the department being aware of the amalgamation, is invalid. The court refused to apply Section 292B of the Income Tax Act, which allows for the rectification of minor errors in notices, to this case. The ruling came in a case where the Income Tax Department issued a notice to an amalgamating company that had ceased to exist due to amalgamation. The court found that the department’s awareness of the amalgamation and the issuance of the notice in the wrong name constituted a significant error, not a minor one. This decision highlights the importance of accurate and timely updates in corporate records and the need for the tax authorities to issue notices to the correct legal entities. The ruling reinforces the principle that procedural errors in tax notices cannot be overlooked when they affect the validity of the notice.