2022 (5) TMI 113 - HC - Income Tax

Validity of reopening of assessment u/s 147 - notice issued in the name of a dissolved/struck off company - HELD THAT - Issue notice. Mr.Kunal Sharma, Advocate accepts notice on behalf of the Revenue and Mr. Awadhesh Kumar Singh ,Advocate accepts notice on behalf of UOI. They pray for and are permitted to file their counter affidavits within four weeks. Rejoinder-affidavits, if any, be filed before the next date of hearing. List on 07th September, 2022. Till further orders, there shall be a stay of the impugned assessment order dated 19th December, 2019 passed by the Respondent No.2 under Sections 144/147 of the Act.

Summary

Issues:
Challenge to assessment order under Income Tax Act, 1961; Amendment to Faceless Appeal Scheme, 2020; Opportunity of hearing for petitioner; Jurisdictional defect in assessment order; Legal standing of dissolved/struck off company; Reference to relevant case laws.

Analysis:

The High Court heard a writ petition challenging an assessment order dated 19th December, 2019, passed under Sections 144/147 of the Income Tax Act, 1961. The petitioner sought directions to amend the Faceless Appeal Scheme, 2020, allowing entities struck off from the register of companies to access their right of appeal. The petitioner also requested an opportunity for a hearing. The petitioner argued that the assessment order was void ab initio as it was issued in the name of a dissolved/struck off company. The counsel cited precedents like Savita Kapila vs. ACIT and Pr. Commissioner of Income Tax vs. Maruti Suzuki India Limited to support their argument.

The Court issued a notice to the respondents, who accepted notice and were given four weeks to file their counter affidavits. The matter was scheduled for the next hearing on 07th September, 2022. Additionally, the Court granted a stay on the impugned assessment order until further orders. The case involved complex legal issues regarding the jurisdictional validity of the assessment order and the rights of entities struck off from the register of companies to appeal under the Faceless Appeal Scheme, 2020. The references to relevant case laws indicate a strong legal basis for the petitioner's arguments, highlighting the importance of legal precedent in tax matters.

Overall, the judgment reflects a meticulous consideration of the petitioner's claims, with the Court taking a proactive approach by granting a stay on the assessment order and allowing the respondents time to present their case. The outcome of the case remains pending until the next hearing, where further arguments and evidence are expected to be presented, shaping the final decision on the issues raised in the petition.