9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1119 - AT - Income TaxReassessment in the case of a dissolved company even for the year in which the company was existing - reopening against not existing company - Held that - Since in the instant case the Assessing Officer has issued notice u/s 148 on a non-existent company as the assessee company has been liquidated vide the order of the Hon ble High Court dated 06.08.2009 therefore we do not find any infirmity in the order of the CIT(A) quashing the re-assessment proceedings. We therefore uphold the same. The ground raised by the Revenue is accordingly dismissed. See VERTEX CUSTOMER MANAGEMENT INDIA PVT. LTD. VERSUS DCIT CIRCLE- 26 (1) NEW DELHI 2018 (7) TMI 823 - ITAT DELHI - Decided in favour of assessee.
Issues Involved:
1. Validity of reassessment proceedings initiated against a dissolved company. Detailed Analysis: Issue 1: Validity of reassessment proceedings initiated against a dissolved company The primary issue in this case was whether reassessment proceedings could be initiated against a company that had been dissolved. The facts of the case reveal that the assessee company filed its return of income on 31st October 2004, declaring a loss. The initial assessment was completed, and a subsequent notice under section 148 was issued on 28th March 2011. However, the company had been dissolved pursuant to an order by the Hon'ble Delhi High Court on 6th August 2009. The CIT(A) quashed the reassessment proceedings on the grounds that they were initiated against a non-existent entity. The CIT(A) cited several judicial precedents to support this decision: 1. CIT Vs. Express Newspapers Limited: The Hon'ble Madras High Court held that the existence of an assessee is essential for an assessment. An assessment made long after a company was struck off from the register of companies is not valid. This decision was affirmed by the Hon'ble Supreme Court. 2. Hewlett Packard India (P) Ltd Vs. ACIT: The ITAT Delhi held that no order can be passed on a non-existent company, emphasizing that the existence of the person sought to be taxed at the point of making the assessment is a condition for the validity of the assessment. 3. Modi Corp Ltd Vs. JCIT: The ITAT Delhi observed that the assessment made in the name of a company after its dissolution was not valid, and such an assessment is null and void. 4. Spice Entertainment Ltd. vs. CIT: The Hon'ble Delhi High Court held that once a company ceases to exist, any assessment order passed in its name is void. The court emphasized that such a defect is not merely procedural but a jurisdictional defect. 5. Impsat (P) Ltd. vs. Income Tax Officer: The ITAT Delhi held that if a company is not in existence at the time of making the assessment, no valid order of assessment can be passed upon it. 6. Commissioner of Income Tax vs Vived Marketing Servicing Pvt. Ltd.: The Hon'ble Delhi High Court held that an assessment order passed against a company that had been dissolved is invalid. The Tribunal, after considering the rival submissions and perusing the orders of the authorities below, upheld the decision of the CIT(A). The Tribunal found that the reassessment proceedings were indeed initiated against a non-existent entity, rendering them void ab initio. The Tribunal cited its own decisions in similar cases, such as Vertex Customer Management India Pvt. Ltd. vs. DCIT and M/s Sony Mobile Communications India (P) Ltd. vs. DCIT, where assessments framed on non-existent companies were quashed. The Tribunal also referenced the Hon'ble Supreme Court's dismissal of the SLP filed by the Revenue in the case of Spice Entertainment Ltd., reinforcing the principle that assessments against non-existent entities are null and void. In conclusion, the Tribunal dismissed the appeal filed by the Revenue, affirming that the reassessment proceedings initiated against a dissolved company are invalid and void ab initio. The decision was pronounced in the open court on 16.10.2018.
|
