Kanan Films Pvt. Ltd., Ahmedabad V. The Income tax Officer, Ward-2(1)(2), Ahmedabad

ITA 344/AHD/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8602 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 09-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Reassessment proceedings
• Section: 144

Judgement Text

SMC-ITA NO. 344/AHD/2017 KANAN FILMS PVT LTD VS. ITO ASSESSMENT YEAR: 2008-09 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD [ BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT ] ITA NO. 344/AHD/2017 ASSESSMENT YEAR : 2008-09 KANAN FILMS PVT LTD ............APPE LLANT BY ITS EX-DIRECTOR, C/O. SHRI BHARATBHAI B. PATEL, B/27 SHAMSATTADHAR SOC., NR. SAIBABA TEMPLE, GHATLODIYA, AHMEDABAD [PAN AACCK 7453 L] VS. INCOME-TAX OFFICER .......................RESPONDENT WARD 2(1)(2), AHMEDABAD APPEARANCES BY: SN DIVATIA & MEHUL TALERA FOR THE APPELLANT ALBINUS TIRKEY FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 24.09.2018 DATE OF PRONOUNCING THE ORDER : 11.12.2018 O R D E R 1. THIS APPEAL IS DIRECTED AGAINST THE ORDER DATED 22 ND DECEMBER 2016 PASSED BY THE LEARNED CIT(A) IN THE MATTER OF ASSESSMENT U NDER SECTION 144 R.W.S 147 OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2008- 09. 2. IT IS A CASE OF REOPENED ASSESSMENT. THE ASSESSM ENT WAS REOPENED ON 31 ST MARCH 2015 BUT THEN AS THE LETTER DATED 5 MAY 2011, ISSUED BY THE REGISTRAR OF COMPANIES - A COPY OF WHICH WAS PLACED BEFORE US AT PAGE 5 OF THE PAPER BOOK, WOULD SHOW, THE COMPANY ITSELF WAS DISSOLVED ON 5 TH MAY 2011. IT IS BY NOW WELL SETTLED IN LAW THAT THERE CANNOT BE AN ASSESSMENT O F A DEAD PERSON OR DEFUNCT COMPANY. HONBLE DELHI HIGH COURT IN THE CASE OF SP ICE INFOTAINMENT LTD VS CIT (247 CTR 500) HAS REITERATED SO. WHEN I ASKED THE LEARNED COUNSEL WHETHER THIS FACT OF THE COMPANY BEING DEFUNCT WAS BROUGHT TO TH E NOTICE OF THE AUTHORITIES BELOW, I WAS TOLD THAT THE CIT(A) HAD DECLINED TO ADMIT TH E ROC CERTIFICATE ABOUT THE COMPANY HAVING BEEN DISSOLVED ON 5 TH MAY 2011 AS IT WAS TREATED AS ADDITIONAL EVIDENCE. IT WAS IN THIS BACKDROP THAT THE CIT(A) HAS CONFIRMED THE VALIDITY OF REASSESSMENT PROCEEDINGS, AGGRIEVED BY WHICH THE AS SESSEE IS IN APPEAL BEFORE ME. 3. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. SMC-ITA NO. 344/AHD/2017 KANAN FILMS PVT LTD VS. ITO ASSESSMENT YEAR: 2008-09 PAGE 2 OF 2 4. I FIND THERE IS NO DISPUTE ABOUT THE FACT THAT T HE ASSESSEE COMPANY WAS NOT IN EXISTENCE AT THE POINT OF TIME WHEN THE REASSESSMEN T PROCEEDINGS WERE INITIATED; ITS NAME WAS ALREADY STRUCK OFF THE RECORDS OF THE REGI STRAR OF COMPANIES. WHEN THE COMPANY WAS NO LONGER IN EXISTENCE, NO LAWFUL REASS ESSMENT PROCEEDINGS COULD HAVE BEEN INITIATED. FOR THIS REASON ALONE, AND IN THE LIGHT OF WELL SETTLED LEGAL POSITION IN THIS RESPECT, THE REASSESSMENT PROCEEDI NGS DO NOT MEET MY JUDICIAL APPROVAL. I, THEREFORE, QUASH THE REASSESSMENT PROC EEDINGS. AS THE REASSESSMENT ITSELF STANDS QUASHED, ALL OTHER ISSUES IN THIS APP EAL ARE RENDERED ACADEMIC. I NEED NOT DEAL WITH THOSE ISSUES AT THIS STAGE. 5. IN THE RESULT, THE APPEAL IS ALLOWED IN THE TERM S INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT TODAY ON THE 11 TH DAY OF DECEMBER, 2018. SD/- PRAMOD KUMAR (VICE PRES IDENT) AHMEDABAD, THE 11 TH DAY OF DECEMBER, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: .....ORDER PREPARED AS PER 4 PAGES MANUSCRIPT OF HONBLE VP...11.12.2018....... ... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 11.12.2018...... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .. . 11.12.2018....... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 11.12.2018... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ... 11.12.2018......... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER: