Assessment Order Issued in Wrong Name Post-Merger Declared Invalid : Delhi High Court

The Delhi High Court rejected the Income Tax Department's appeal to treat a reassessment notice issued in the name of a merged entity as a curable error under Section 292B of the Income Tax Act.

The case involved M/s Vedanta Ltd., formed after M/s Cairn India Ltd.’s merger. The Court distinguished the Supreme Court’s ruling in Sky Light Hospitality LLP v. ACIT (2018), citing that the merger was duly disclosed, yet the assessment order named a non-existent entity.

Referring to Pr. CIT v. Maruti Suzuki (2020), it held such an order as inherently flawed and beyond rectification under Sections 292B or 154, dismissing the Department’s appeal.