M/s. Dolf Leasing Ltd., New Delhi V. ITO, New Delhi

ITA 1335/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4055 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 06-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Accommodation entries
• Section: 148; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 1335 /DEL/201 7 [A.Y. 20 09 - 1 0 ] M/S DOLF LEASING LTD VS. THE I.T. O [AMALGAMATED COMPANY] WARD 9 ( 1 ) FOR M/S S.N. D OTCOM PVT LTD NEW DELHI [AMALGAMATING COMPANY SHOP NO. 325, 3 RD FLOOR AGARWAL PLAZA, SECTOR 14 ROHINI, NEW DELHI PAN : AJJPA 4442 Q [APPELLANT] [RESPONDENT] DATE OF HEARING : 0 5 . 1 0.2017 DATE OF PRONOUNCEMENT : 11 . 1 0.2017 ASSESSEE BY : SHRI DEEPAK OSTWAL SHRI RISHAB OSTWAL REVENUE BY : SHRI T. VASANTHAN SR. DR ORDER THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE LD. CIT(A) - 22 , NEW DELHI VIDE ORDER DATED 1 8 . 0 1 .201 7 FOR ASSESSMENT YEAR 20 09 - 1 0 . 2. THE ASSESSEE HAS RAISED AS MANY AS NINE GROUNDS OF APPEAL . HOWEVER, THE ASSESSEE HAS MAINLY AGITATED THE ISSUANCE OF NOTICE U/S 2 148 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] WHICH IS ON THE NON EXISTING COMPANY I.E. THE ASSESSEE COMPANY , WHICH HAS ALREADY WOUND UP. 3. FACTS , IN BRIEF, ARE THAT M/S S. N. DOTCOM PRIVATE LIMITED WAS AMALGAM ATED WITH M/S SUAVE TECHNOLOGIES (P) LIMITED VIDE ORDER OF HONBLE DELHI HIGH COURT DATED 17 TH AUGUST, 2012 W.E.F. 01.04.2011. M/S SUAVE TECHNOLOGIES (P) LIMITED WAS LATER AMALGAMATED WITH M/S DOL F LEASING LIMITED , I.E. THE ASSESSEE, AS PER THE ORDER OF HO N'BLE DELHI HIGH COURT DATED 15 JULY, 2014 W.E.F. 01.04.2014. THEREFORE, THE APPEAL HAS BEEN FILED BY M/S DOLT LEASING LIMITED , THE APPELLANT , WHO HAS CHALLENGED THE VALIDITY OF NOTICE U/S 148 AS IT WAS ISSUED IN THE NAME OF M/S S. N. DOTCOM PRIVATE LIMITE D ON 30 TH MARCH, 2014 WHEN THE SAID COMPANY WAS NOT IN EXISTENCE. THE APPELLANT HAS CHALLENGED THE ADDITION ON MERITS AS WELL. 4. AS FAR AS MERITS OF THE ADDITION ARE CONCERNED , THE LD. CIT(A) OBSERVED THAT THE EVIDENCE OF ACCOMMODATION ENTRIES WAS FOUND /SEIZED DURING THE SEARCH AND THE APPELLANT DID NOT COMPLY WITH THE STATUTORY NOTICES ISSUED NOR DID IT FURNISH ANY INFORMATION OR EVIDENCE TO CONTROVERT, THE FINDING OF AO AT THE APPELLATE STAGE . THE 3 LD. CIT(A) FURTHER OBSERVED THAT THE APPELLANT CANNOT TAKE ADVANTAGE OF ITS OWN STATUTORY LAPSE, BESIDES THE FINDING THAT THE NOTICE U/S 148 IS DEEMED TO HAVE BEEN ISSUED IN THE NAME OF M/S SUAVE TECHNOLOGIES (P) LIMITED IN VIEW OF SECTION. 292B (FOR THE REASON THAT THE AMALGAMATED COMPANY STEPS INTO THE SHOE S OF AMALGAMATING COMPANY AND NO EVIDENCE OF APPLICATION FOR CANCELLATION OF PAN AND INTIMATION OF AMALGAMATION TO AO HAS BEEN FURNISHED) THE TECHNICAL GROUNDS OF APPEAL ARE ALSO LIABLE TO BE DISMISSED. ACCORDINGLY THE LD. CIT(A) DISMISSED THE APPEAL OF T HE ASSESSEE. 5. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ISSUE BEFORE US IS AS TO WHETHER THE NOTICE ISSUED IN THE NAME OF M/S S. N. DOTCOM PRIVATE LIMITED ON 30.03.2014 IF A VALID NOTICE ISSUED IN THE NAME OF M/S DO LF LEASING COMPANY LIMITED OR NOT. THE ANSWER IS QUITE EVIDENT, WHICH IS NEGATIVE AND NO NOTICE HAD BEEN ISSUED ON M/S DOLF LEASING COMPANY LIMITED BUT THE SAME HAD BEEN ISSUED IN THE NAME OF M/S S. N. DOTCOM PRIVATE LIMITED , WHICH, IN FACT, HAD MERGED ON 17.08.2012 WITH M/S SAUVE TECHNOLOGIES [P] LTD. THEREFORE, IN SUCH CIRCUMSTANCES, AND FACTS OF THE CASE, NOTICE TO A NON EXISTING PERSON IS NO NOTICE AND THE ASSESSING OFFICER DOES NOT ACQUIRE JURISDICTION TO ASSESS OR REASSESS U/S 147/148 OF THE ACT . IN 4 THAT VIEW OF THE MATTER, THE NOTICE SO ISSUED IS BAD IN LAW AND THE ASSESSMENT SO MADE IS DIRECTED TO BE QUASHED. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 11 . 1 0.2017. SD/ - [B.P. JAIN] ACCOUNTANT MEMBER DATED: 11 TH OCTOBER , 2017 VL/ COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI