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TMI Blog2008 (3) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... TARAMAN JJ. Naresh Kumar for the appellant. JUDGMENT The judgment of the court was delivered by K. RAVIRAJA PANDIAN J.— These appeals are filed against the order of the Income-tax Appellate Tribunal "C" Bench, Chennai, dated December 22, 2006, in I. T. A. No. 644 to 648/Mds/2003 for the assessment years 1990-91 to 1994-95 respectively. 2. The common question of law formulated for entertainment of these appeals are as follows "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessment could not be made on the company incorporated purely to takeover the partnership's business, assets and liabilities, with the same partners as shareholders and directors for the years prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that when the partners of the erstwhile firm are alive and available, notice should have been sent to them and not to the company and only in the event of their not being available, the assessment could have been made against the assessee-company. By those reasoning, he allowed the appeal. Not accepting the order, the Revenue took up the matter on appeal to the Income-tax Appellate Tribunal, the Tribunal upheld the order of the Commissioner (Appeals). Aggrieved by the order of the Tribunal, the present appeals are filed. 4. Heard the argument of learned counsel. 5. The relevant statutory provision in the Income-tax Act is section 189, which provides for assessment in respect of a firm dissolved or business discontinued, which rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be apply accordingly. (5) Nothing in this section shall affect the provisions of sub-section (6) of section 159." 6. From the abovesaid provision, it is amply clear that the notice on the assessee-company which was not in existence during the relevant period of assessment is not in accordance with the statutory provision, particularly sub-section (3) of section 189 of the Income-tax Act. The justification made by the Assessing Officer cannot be legally sustainable on the face of the statutory provision. When he sought to invoke section 189, he would have applied his mind to the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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