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| The Tax Publishers2020 TaxPub(DT) 1454 (Mad-HC) INCOME TAX ACT, 1961
Section 147
Since factual aspects of affairs of dissolved Company were to be gone into by AO, therefore Single Judge rightly remanded the matter back to AO and issued directions.
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Reassessment - In Relevant assessment year Company was not in existence, as it got demurged - Remand of matter whether necessary to examine facts -
Assessee was issued notice for reopening of assessment under Section 148. Case of assessee was that for relevant assessment year Company was not in existence, as it got demurged. Assessee challenged said notice through writ petition. Single Judge passed order, wherein he granted liberty to assessee to raise objections before AO. Held: The factual aspects of affairs of dissolved Company were to be gone into by AO and therefore, Single Judge rightly remanded the matter back to AO and issued directions. Section 506(5) proviso (a) of Companies Act and Chapter XV of the Income Tax Act which deals with “liability in special cases” and its clause (L) which deals with “discontinuance of business or dissolution” and these provisions provide as to how and in what manner the liability against such Company arising under the Companies Act and under the Income Tax Act is required to be dealt with. Mere winding up or dissolution of the Company would not take away its liability, which is a matter to be gone into by the AO. Thus, no interference was warranted.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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