| The Tax Publishers2020 TaxPub(DT) 3116 (Mad-HC) INCOME TAX ACT, 1961
Section 147
Where assessment pertaining to the assessment year 2000-01, was reopened and assessee fully participated in reassessment proceedings and thereafter the reassessment order was passed, the said reassessment order would take effect and to be effective for the assessment year 2000-01 and striking off the name of the assessee from the Register of Companies on 25-5-2007, could in no manner impact the said assessment.
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Reassessment - Validity - Name of assessee-company struck off from Register of Companies before assessment order being passed -
Assessee-company filed an appeal against assessment order passed under section 143(3) read with section 147, which was dismissed by CIT (A). Aggrieved by such order, an appeal was filed before Tribunal. Further, the assessee for the very first time raised a new ground before the Tribunal stating that the assessment itself was bad in law and nullity, since the name of the assessee-company was struck off from the Register of Companies, even before the assessment order was passed. After considering such additional ground of the assessee, the Tribunal remanded the matter to the AO to investigate as to whether the assessee was in existence at the relevant time. Aggrieved, Revenue filed an instant appeal. Held: When the assessment was reopened by issuing notice, dated 20-3-2007 under section 148, the assessee-company was carrying on business. Further, the assessee fully cooperated in the reassessment proceedings and at no point of time, it informed the AO that the company had been struck off from the Register of Companies on 25-5-2007. Thus, there was no occasion for the AO to know about such fact. Further, the assessment pertaining to the assessment year 2000-01, was reopened and the assessee fully participated in reassessment proceedings and thereafter the reassessment order was passed. Therefore, the reassessment order would take effect and to be effective for the assessment year 2000-01 and the striking off the name of the assessee from the Register of Companies on 25-5-2007, could in no manner impact the said assessment. Moreover, even if stand taken by the Tribunal was accepted to be correct, that the issue would go to the root of the matter, the Tribunal erred in not considering the provisions of section 176 and without deciding the said issue, the question of remanding the matter to the AO did not arise and consequently, the Tribunal committed an error of law on that aspect.
Distinguished:Pr. CIT, New Delhi v. Maruti Suzuki India Limited 2019 (416) ITR 0613 (SC) : 2019 TaxPub(DT) 4931 (SC) Impsat (P) Ltd. v. ITO. 2004 TaxPub(DT) 1805 (Del-Trib)
REFERRED :
FAVOUR : In appellant's favour
A.Y. : 2000-01
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