DCIT, CENTRAL CIRCLE-4(3), KOLKATA, KOLKATA V. ISHANA PROJECTS PRIVATE LIMITED, KOLKATA

ITA 1775/KOL/2025

AI Insights

The case involves two appeals by the revenue against Ishana Projects Private Limited concerning the assessment years 2015-2016 and 2016-2017. The core issue was the validity of the notices issued under section 148 of the Income Tax Act to Energy Commodities Pvt. Ltd., which had merged with Ishana Projects Pvt. Ltd. prior to the issuance of the notices. The CIT(A) quashed the assessment orders on the technical ground of the merger, which was supported by the Supreme Court's decision in Maruti Suzuki Ltd. The Tribunal agreed with the CIT(A)'s decision, emphasizing that the entity to which the notices were issued no longer existed legally at the time of the notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824581 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 05-08-2025
• Other Referred Cases: Maruti Suzuki Ltd vs. Others
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRATA AICH
• Assessee Lawyers: MANISH RASTOGI
• Keywords: Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.1774 & 1775/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2015-2016 & 2016-2017) DCIT, Central Circle-4(3), Kolkata Vs Ishana Projects Private Limited, 4, Block 1 Unit 7(O), Chowringhee Lane, Park Street, Kolkata-700016 PAN No. :AAHCM 4897 K (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by Shri Manish Rastogi, Advocate रधजस्व की ओर से /Revenue by : Shri Subrata Aich, JCIT-Sr.DR सुनवाई की तारीख / Date of Hearing : 30/12/2025 घोषणा की तारीख/Date of Pronouncement : 30/12/2025 आदेश / O R D E R Per Bench : These two appeals are filed by the revenue against the separate orders of the ld. CIT(Appeals), Kolkata-27, both dated 15.04.2025 for the assessment years 2015-2016 & 2016-2017. 2. Both appeals of the revenue are filed belatedly by 05 days each. In this regard, the revenue has filed affidavit in both the appeals stating therein sufficient reasons for condonation of delay. Considering facts and circumstances of the case and the reasons stated in the affidavit, we condone the delay of 05 days each in both the appeals of the revenue and both the appeals are admitted for hearing. 3. It was submitted by the Ld. Sr.DR that the assessee being Energy Commodity Private Limited was involved in sale of bogus investments. It was submission that consequently reopening had been done by issuance of notice 148 of the Act on 10/01/2024 and the reasons were recorded and Printed from counselvise.com ITA No.1774&1775/KOL/2025 2 provided to the assessee on 19/03/2024, the reasons recorded was shown in the assessee’s paper book at pages 146 to 167 which reads as follows:- Printed from counselvise.com ITA No.1774&1775/KOL/2025 3 x x x x x x Printed from counselvise.com ITA No.1774&1775/KOL/2025 4 Printed from counselvise.com ITA No.1774&1775/KOL/2025 5 Printed from counselvise.com ITA No.1774&1775/KOL/2025 6 4. It was submission that the notice issued u/s.148 of theAct was at pages 129 which reads as follows:- Printed from counselvise.com ITA No.1774&1775/KOL/2025 7 Printed from counselvise.com ITA No.1774&1775/KOL/2025 8 5. It was the submission that the assessment came to be completed u/s.143(3) of the Act r.w.s.147 of the Act on 29/03/2024 where the bogus investment sold was treated as unexplained income of the assessee and brought to tax. It was the submission that on appeal, Ld.CIT(A) on the technical ground that the assessee had merged with M/s. Ishana Projects Private Limited, deleted the additions and quashed the assessment order. It was submission that the Ld.CIT(A) ought to have decided the issues on merits and he should not have quashed the assessment order. He vehemently supported the order of the AO. 6. In reply, the Ld.AR submitted that the assessee Energy Commodities Private Limited amalgamated with M/s Ishana Projects Private Limited by an order dated 19/07/2022. It was the submission that this was intimated to the AO as also the PCIT vide communication dated 27/09/2022. It was the submission that the reasons recoded for reopening in para 2 also specifically brings out the fact that the assessee Energy Commodities Pvt. Ltd has merged with M/s Ishana Projects Pvt. Ltd vide NCLT order dated 19/07/2022. It was submission that once the merger takes place, obviously the company Energy Commodities Pvt. Ltd would no more exist. It was the submission that the order of the Ld. CIT(A) quashing the assessment order in the case of Energy Commodities Pvt. Ltd. by relying upon the decision of the Hon’ble Supreme Court in the case of Maruti Suzuki Ltd, reported in 107 taxmann.com 375 was right. It was submission that the order of the Ld. CIT(A) is liable to be upheld. Printed from counselvise.com ITA No.1774&1775/KOL/2025 9 7. We have considered the rival submission. A perusal of the facts in the present case clearly shows that the reasons recorded has been issued in the case Energy Commodities Pvt. Ltd. The PAN Number referred to in the notice issued u/s.148 of the Act is also that of Energy Commodities Pvt. Ltd. The fact remains that the when the said reasons were recorded and when the notice was issued, M/s Energy Commodities Pvt. Ltd. did not exist, insofar as, it had already merged with M/s Ishana Projects Pvt. Ltd. Once it is recognized by the AO that M/s Energy Commodities Pvt Ltd. has already been merged/amalgamated with M/s Ishana Projects Pvt. Ltd and this has also categorically mentioned in the reasons recorded. It was no more available with the AO to issue a notice in the case of an amalgamated company as the said company was no more exist. This being so, we find no error in the order of the Ld.CIT(A) in quashing the assessment orders passed in the case of Energy Commodity Pvt. Ltd by relying upon the decision of the Hon’ble Supreme Court in the case of Maruti Suzuki India Ltd, referred to supra. In these circumstances the order of the CIT(A) in both the appeals for both the assessment years under consideration stand upheld and both appeals filed by the revenue stand dismissed. 9. In the result, both appeals of the revenue are dismissed. Order dictated and pronounced in the open court on 30/12/2025. Sd/- (RAJESH KUMAR) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 30/12/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.1774&1775/KOL/2025 10 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "