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TMI Blog2023 (4) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... n the bank continued in the name of the firm and interest income was received for the entire previous year and utilised by the firm. This finding has not been controverted by the Ld. AR. Section 189 mandates that where a firm is dissolved the AO shall make an assessment of the total income of the firm as if no such dissolution had taken place and all the provisions of the Act including the provisions relating to levy of a penalty or any other sum chargeable under any provisions of this Act shall apply to such assessment. It is thus obvious that section 189 keeps the firm alive for the purposes of assessment despite its dissolution. It ensures that the firm which is dissolved does not escape the liability to tax after its dissolution - No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining to the Assessment Year ( AY ) 2016-17. 2. The assessee has taken the following grounds of appeal: - 1. That under the facts and circumstances, the Ld. A.O. exceeded his jurisdiction in examining the issue of bank FDR intt. of Rs.71,998/since A.Y. 16-17 is unabated year and no incriminating material found and seized during search relating to this issue. 2. That in law as well as on merits, the bank FDR intt. of Rs.69,692/- (71,998 - 2306) which relates to last 03 quarters of F.Y.2015-16 i.e. from 01.07.15 to 31.03.16, since accrued and also majorly relates to the period subsequent to the dissolution of assessee partnership firm on 06.05.15, therefore, under no circumstance it can be assessed in the hands of assessee fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter alia, the addition of Rs. 71,998/-.The Ld. CIT(A) discussed this issue in para 4.6.1 and 4.6.2 and recorded his findings in para 4.6.3 which is extracted below:- 4.6.3 I have gone through the facts of the case and the submission made by the appellant. There is no evidence available as to whether the dissolution of firm was made known to the Assessing Officer. Further the appellant did not file the said dissolution deed before the department after the dissolution for deactivation of PAN. The fixed deposit in the bank continued to be in the name of firm and the interest income was received and utilised by the appellant only. There is no evidence with the Department to conclusively prove that the firm was dissolved on 06.09.2015. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hip firm. 8. The Ld. DR relied on the orders of the Ld. AO/CIT(A). He submitted that the Ld. AO did not know that the firm has been dissolved. 9. We have considered the rival submissions and perused the records. It is not in dispute that Form 26AS reflects the receipt of interest of Rs. 92,753/- by the assessee firm from ING Vysya Bank Ltd. on which the bank has deducted tax at source. It shows that the bank has credited the entire amount of interest of the year in the account of the assessee partnership firm in whose name the accounts stand in the books of the bank. The Ld. CIT(A) has recorded a finding of fact that the fixed deposit in the bank continued in the name of the firm and interest income was received for the entire previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of Hon ble Delhi High Court in CIT vs. Kabul Chawla (2016) 380 ITR 573 (Delhi) and tested the facts of the assessee s case on the anvil of the principles of law enunciated by the Hon ble Delhi High Court in the decision (supra) and recorded his conclusion in para 4.5.8 as under:- 4.5.8 This is a case where the return of income was not filed by the appellant for the AY under consideration. Since no return has been filed the entire income shall be regarded as undisclosed income. Consequently, in my considered opinion, the AO would have the authority/jurisdiction to assess the entire income similar to jurisdiction in regular assessment u/s 143(3). Therefore, there will be no requirement to restrict to documents found during the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X
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