NAVRATAN VANIJYA PVT. LTD.,KOLKATA V. ITO, WARD-6(3), KOLKATA

ITA 782/KOL/2024

AI Insights

The case involves Navrartan Vanijya Pvt. Ltd., which appealed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment years 2010-11 and 2011-12. The appeals addressed penalties under section 271(1)(c) and reassessments under sections 147 and 144 of the Income Tax Act, 1961. A significant issue was the validity of the notice under section 148, as the company had been struck off from the Registrar of Companies prior to the issuance of the notice. The Tribunal decided to restore the matter to the Assessing Officer to verify the company's status at the time of the notice and to reassess accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37636 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDAN DAS; ADD.
• Assessee Lawyers: DEEP AGARWAL
• Keywords: Opportunity of being heard
• Section: 147; 148; 250; 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA Nos. 781 to 782/KOL/2024 Assessment Years: 2010-11 & 2011-12 & ITA Nos. 783 to 784/KOL/2024 Assessment Years: 2010-11 & 2011-12 Navrartan Vanijya Pvt. Ltd. 15A, Clive Row, Kolkata- 700001. (PAN: AACCN8156B) Vs. ITO, Ward-6(3), Kolkata. (Appellant) (Respondent) Present for: Appellant by : Shri Deep Agarwal, AR Respondent by : Shri Chandan Das, Add. CIT, Sr. DR Date of Hearing : 25.03.2025 Date of Pronouncement : 25.03.2025 O R D E R Per Bench : All these captioned appeals filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order nos. ITBA/NFAC/S/250/2023-24/1061031468(1), ITBA/NFAC/S/250/ 2023-24/1061032378(1), ITBA/NFAC/S/250/2023-24/1061030994(1) & ITBA/NFAC/S/250/2023-24/1061032055(1) all dated 16.02.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AYs 2010-11 and 2011-12. 2 ITA No. 781 to 784/Kol/2024 Navrartan Vanijya P. Ltd., AYs: 2010-11 & 2011-12 2. Shri Deep Agarwal, AR appeared on behalf of the assessee and Shri Chandan Das, Addl. CIT, Sr. DR appeared on behalf of the revenue. 3. ITA Nos. 781 & 782/Kol/2024 have been filed by the assessee against the penalty order passed u/s. 271(1)(c) of the Act and ITA Nos. 783 & 784/Kol/2024 have been filed by the assessee against the order passed u/s. 147 r.w.s. 144 of the Act. 4. At the time of hearing, it was submitted by the Ld. AR that the notice u/s. 148 of the Act in the present case came to be issued on 29.03.2017. It was mentioned that the assessee company was incorporated on 16.07.2009. It was mentioned that the assessee company has been struck off by the Registrar of Companies w.e.f. 16.08.2023. For this purpose, the Ld. AR has placed before us a copy of the order of the Registrar of Companies, West Bengal dated 16.08.2013, which is reproduced as under: 3 ITA No. 781 to 784/Kol/2024 Navrartan Vanijya P. Ltd., AYs: 2010-11 & 2011-12 5. A specific query has been made as to why this fact has not been placed before the Assessing Officer. In this regard, the Ld. AR submitted that the assessee did not receive any notice as the assessee company was no more in existence. Another query has also been made as to why this was not produced before the ld. CIT(A). In this regard, there is no response from the Ld. AR of the assessee. Admittedly, this is a fresh evidence which has now been brought to the notice of the Tribunal. However, there was no application for admitting fresh evidence. However, a perusal of the said evidence shows that it goes to the root of the assessment, and we deem it fit to restore this issue to the file of the Assessing Officer for re-adjudication after examining as to whether the assessee has been struck off from the Registrar of Companies. If the assessee has been actually struck off from the Registrar of Companies before issuing notice u/s 148 obviously, the assessment proceedings would become invalid. Therefore, in the interest of justice, the issues raised in ITA Nos. 783 & 784/Kol/2024 are restored to the file of the Assessing Officer for re-adjudication after granting adequate opportunity of being heard to the assessee. 6. In regard to the ITA Nos. 781 & 782/Kol/2024, which are against the penalty proceeding u/s. 271(1)(c) of the Act, since the issues in the quantum appeal are restored to the file of the Assessing Officer for re- adjudication the penalty proceedings would automatically get abated and consequently, the appeal of the assessee in ITA Nos. 781 & 782/Kol/2024 are allowed. 4 ITA No. 781 to 784/Kol/2024 Navrartan Vanijya P. Ltd., AYs: 2010-11 & 2011-12 7. In the result, the appeals as per ITA Nos. 783 & 784/Kol/2024 are partly allowed for statistical purposes while appeal as per ITA Nos. 781 & 782/Kol/2024 are allowed. Order dictated and pronounced in the open court. Sd/- Sd/- (Sanjay Awasthi) (George Mathan) Accountant Member Judicial Member Dated: 25th March, 2025 JD, Sr. P.S. Copy to: 1. The Appellant: Navratan Vanijya Pvt. Ltd. 2. The Respondent. ITO, Ward-6(3), Kolkaeta. 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata Bench, Kolkata 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "