GREENSPACE INFRATECH PVT. LTD.,VADODARA V. THE INCOME TAX OFFICER,WARD-1(1)(3) NOW WARD-1(1)(1), VADODARA

ITA 699/AHD/2023

AI Insights

The case involves cross appeals by the Revenue and the Assessee, Greenspace Infratech Pvt. Ltd., against the order of the Commissioner of Income-Tax (Appeals), which pertained to the Assessment Year 2013-14. The primary contention revolved around the additions and disallowances made during the assessment, which included unexplained cash credits, sundry creditors, and investments. The CIT(A) had partially relieved the Assessee by deleting one of the significant additions but upheld others, leading to the appeals. However, the legal status of the Assessee as a struck-off company under the Companies Act, 2013, led to the dismissal of both appeals as the company ceased to operate as a legal entity capable of bearing tax liabilities or engaging in legal proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126828 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Laws Referred To: Income-tax Act, 1961, Companies Act, 2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A P SINGH
• Assessee Lawyers: TUSHAR HEMANI
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 143(3); 250; 68; 22; 20

Judgement Text

"ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 1– IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.TA. No.510/Ahd/2023 (Assessment Year: 2013-14) The Income Tax Officer, Ward-1(1)(1), Vadodara. Vs. M/s. Greenspace Infratech Pvt. Ltd., 102 Atlantik IV, 3, Abhishek Society, Nr. Natubhai Centre, Race Course Circle, Vadodara-390007. [PAN No. AADCG 8531 G] I.TA. No.699/Ahd/2023 (Assessment Year: 2013-14) M/s. Greenspace Infratech Pvt. Ltd. 102 Atlantik IV, 3, Abhishek Society, Nr. Natubhai Centre, Race Course Circle, Vadodara-390007. [PAN No. AADCG 8531 G] Vs. The Income Tax Officer, Ward-1(1)(1), Vadodara. (Appellant) .. (Respondent) Appellant by : Shri Tushar Hemani, Sr. Advocate ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 2– with Shri Parimalsinh B Parmar, AR Respondent by: Shri AP Singh, CIT. DR Date of Hearing 20.03.2025 and 16.01.2025 Date of Pronouncement 22 .04.2025 O R D E R PER: SUCHITRA KAMBLE, JUDICIAL MEMBER: These cross appeals have been filed by the Revenue and the Assessee against the order of the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short) dated 21.04.2023, passed u/s 250 of the Income-tax Act, 1961, (hereinafter referred to as \"the Act\" for short) for the Assessment Year (AY) 2013-14. 2. The brief facts of the case are that assessee is a Private Limited Company that filed return of income for the year under consideration on 02.08.2013 showing total loss at Rs.3,48,124/-. The case of assessee was selected for scrutiny and the assessment was completed u/s 143(3) of the Act on 28.03.2016 assessing the total income of the assessee at Rs.33,83,12,280/-, by making following additions/disallowances:- ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 3– (i) Unexplained cash credit u/s 68 of the Act - Rs. 6,56,66,047/- (ii) Unexplained Sundry Creditors/others - Rs. 77,02,144/- (iii) Unexplained investment - Rs.26,49,40,943/- 3. Aggrieved by the order of Assessing Officer, the assessee filed appeal before the Ld. CIT(A) who has given relief to the assessee by deleting an amount of Rs. 26,49,40,943/- which was added to the income of the assessee on account of unexplained investment; and confirmed rest of the disallowances made by the Assessing Officer. 4. Aggrieved by the order of the Ld. CIT(A), the assessee and Revenue, both are in appeal before the Tribunal. The Revenue is in appeal against the relief allowed by the Ld. CIT(A) while the assessee is in appeal against the additions/disallowances sustained by the Ld. CIT(A). 5. At the time of hearing for clarification on 20.03.2025, the Bench has confronted to the assessee/Ld. AR regarding the current status of the assessee company which has been shown on the Website of Ministry of Corporate Affairs as follows:- ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 4– ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 5– 6. As per Section 248(5) of the Companies Act, 2013, the effect of striking off the name of the company is as follows: Section 248 ….. (5) “At the expiry of the time mentioned in the notice, the Registrar may, unless cause to the contrary is shown by the company, strike off its name from the register of companies, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the company shall stand dissolved.” 7. As per Section 250 of the Companies Act, 2013 states that where a company stands dissolved under Section 248 of the Act, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the certificate of incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company. It is pertinent to note that there is no provision under the Act which provides for ownership of assets of a company dissolved under Section 248 of the Act. 8. As of now the present assessee company’s status stands as strike off company and no party has revived the company status. The fact remains that this will not bar the revenue authorities to recover the tax demand. The strike off company has not been revived by the Revenue till date thus it remains a dead entity for more than 14 years. A company can get revived for a period of 20 years from the date of strike-off. ITA Nos.510 & 699/Ahd/2023 Asst.Year –2013-14 - 6– 9. Since the present assessee company has been struck off and no party has revived the company status, as such, the present appeal filed by the Revenue as well as the Cross Appeal filed by the assessee become infructuous and hence both the appeals are dismissed. 10. In the result, both the appeals are dismissed. This Order pronounced in Open Court on 22 .04.2025 Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 22 .04.2025 RUE COPY आदेश क\u0007 \b त ल प अ\u0010े षत/Copy of the Order forwarded to : 1. अपीलाथ\b / The Appellant 2. यथ\b / The Respondent. 3. संबं\u0010धत आयकर आयु\u0017त / Concerned CIT 4. आयकर आयु\u0017त(अपील) / The CIT(A)- 5. \u001aवभागीय त न\u0010ध, आयकर अपील!य अ\u0010धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad "