The Income Tax Officer, Ward-2(1)(1), Ahmedabad V. Elephant Enterprises Ltd. (In Liquidation), Ahmedabad

MA 58/AHD/2022

AI Insights

The case involves the Income Tax Officer, Ward-2(1)(1), Ahmedabad as the appellant and M/s. Elephant Enterprises Ltd. (In Liquidation) as the respondent. The Revenue filed a Miscellaneous Application seeking to recall and modify an earlier order, arguing that despite the dissolution of the respondent company by the Hon'ble High Court of Gujarat, the appeal should be maintainable based on precedents from the Supreme Court and other Tribunal decisions. However, the Tribunal found that the cited precedents pertained to companies struck off the register under section 560(5) of the Companies Act, 1956, which was not applicable in this case as the company was dissolved under section 481 of the Companies Act. Consequently, the Tribunal dismissed the Revenue's application, emphasizing that it lacked the authority to review its own decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114088 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-01-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 09-08-2022
• Other Referred Cases: CIT vs. M/s. Gopal Shri Scrips Pvt. Ltd., Dwearka Portfolio Pvt. Ltd. vs. ACIT
• Laws Referred To: Companies Act, 1956
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Liquidation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Income Tax Officer, Ward-2(1)(1), Ahmedabad (Appellant) Vs M/s. Elephant Enterprises Ltd. (In Liquidation) Ground Floor “Jivabhai Chambers” Ashram Road, Nr. Income Tax Circle, Ahemdabad-380014 PAN: AAACE3477C (Respondent) Assessee Represented: None Revenue Represented: Shri Satish Solanki, Sr. D.R. Date of hearing : 27-01-2023 Date of pronouncement : 24-04-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This Miscellaneous Application is filed by the Revenue dismissing the appeal of the Revenue on the ground of maintainability of the appeal, stating that the assessee company has been dissolved by judgment of the Hon’ble High Court of Gujarat and the respondent assessee company does not exist M.A. No. 58/Ahd/2022 (in ITA No. 2289/Ahd/2014) Assessment Year 2008-09 M.A. No. 58/Ahd/2022 A.Y. 2008-09 Page No ITO vs. M/s. Elephant Enterprises Ltd. (In Liquidation) 2 anymore in the eye of law and the Official Liquidator has discharged his duties and relieved as OL. 2. However, the Hon’ble Supreme Court in the case of CIT vs. M/s. Gopal Shri Scrips Pvt. Ltd. [2019] (3) TMI 743- Supreme Court wherein it was held that proceedings can be initiated and continued even after strike off of names of companies remain. Further the Delhi Bench of the Tribunal in the case of Dwearka Portfolio Pvt. Ltd. vs. ACIT in ITA No. 2563/DEL/217 dated 27.05.2022 ruled that even if the company has been struck off from the register of Companies, an appeal filed by it against the revenue does not become ineffective or infructous and is maintainable. Citing the above case laws, the revenue claimed to recall the order dated 28.02.2022 in ITA No. 2289/Ahd/2014 and modify the order accordingly. 3. We have given our thoughtful consideration and perused the material available on record. The revenue in the present Misc. Application quoting the Hon’ble Supreme Court judgment in the case of M/s. Gopal Shri Scrips Pvt. Ltd. and Co-ordinate Bench of the Delhi Tribunal which are in the nature of cases the “company name has been struck off from the register of Companies” under section 560(5) of the Companies Act, 1956. But in the present case of the assessee herein, the Hon’ble High Court of Gujarat dissolved assessee company under M.A. No. 58/Ahd/2022 A.Y. 2008-09 Page No ITO vs. M/s. Elephant Enterprises Ltd. (In Liquidation) 3 section 481 of the Companies Act which has been discussed in detail at paragraph 7 & 8 of the order passed by this Tribunal. Therefore in the present Misc. Application, citing new of the Judgments on the ground of “striking off the name of the company and consequence thereon” will not be applicable to the facts of the present case. Thus the Revenue is re-arguing the appeal with new grounds and case laws, which is not permitted, since the Appellate Tribunal u/s. 254 of the Act, do not have the power to review his own order. Therefore the Present Misc. Application filed by the Revenue is hereby dismissed. 4. In the result, the M.A. filed by the Revenue is dismissed. Order pronounced in the open court on 24-04-2023 Sd/- Sd/- (WASEEM AHMED) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 24/04/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद