2024 (5) TMI 1516 - HC - Income Tax

Provision in the Income Tax Act to assess Firms dissolved - HELD THAT - We take note of the asserted position of the AO in the course of assessment itself having been apprised of the partnership having transformed into a limited company. Thus seeks to draw sustenance from the decision of the Supreme Court in Principal Commissioner of Income Tax (Central)-2 vs. Mahagun Realtors (P.) Ltd. 2022 (4) TMI 347 - SUPREME COURT . We take note of similar questions which form subject matter 2024 (9) TMI 1631 - DELHI HIGH COURT . Accordingly we admit this appeal on the following two questions of law - A) Whether the Income Tax Appellate Tribunal Tribunal has erred in not appreciating the fact that there is specific provision in the Income Tax Act Act to assess Firms dissolved? B) Whether the Tribunal has erred in relying upon the judgment of the Supreme Court in the case of Principal Commissioner of Income Tax New Delhi vs. Maruti Suzuki India Ltd. 2019 (7) TMI 1449 - SUPREME COURT which is distinguishable from the present case? Let this appeal be placed on 05.09.2024.

Summary

The Delhi High Court, in a judgment by Hon'ble Mr. Justice Yashwant Varma and Hon'ble Mr. Justice Purushaindra Kumar Kaurav, considered an appeal (ITA 113/2024) regarding the transformation of a partnership into a limited company. The court noted the Assessing Officer's awareness of this transformation during assessment and referred to the decision in Principal Commissioner of Income Tax (Central)-2 vs. Mahagun Realtors (P.) Ltd. The court admitted the appeal for consideration on two legal questions related to the assessment of dissolved firms and the applicability of a specific judgment. The appeal is scheduled for further hearing on 05.09.2024. The court also condoned delays in filing and re-filing the appeal.