RAMAKANT SINGH ERST DIRECTOR - GMC ICECREAMS PVT LTD (STRICKEN OFF),PATNA V. INCOME TAX OFFICER, WARD 2(1) PATNA, PATNA

ITA 364/PAT/2024

AI Insights

The case involves an appeal by Ramakant Singh, the erstwhile director of GMC Icecreams Pvt. Ltd., against the orders of the Income Tax Officer and the Commissioner of Income Tax (Appeals) concerning the assessment year 2014-15. The company was struck off from the Registrar of Companies on July 14, 2017, and was non-functional at the time the notices under sections 148 and 142(1) of the Income Tax Act were issued. The tribunal considered the legal implications of proceeding against a non-existent entity and the procedural fairness in serving notices to a company that had been officially dissolved.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471236 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: NISHANT MAITIN
• Keywords: Condonation of delay
• Section: 148; 142(1); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH VIRTUAL HEARING AT KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 364/PAT/2024 Assessment Year: 2014-15 Ramakant Singh Erst Director- GMC Icecreams Pvt. Ltd. (Stricken off), Patna. 101, Lotus Apartment, New Patliputra Colony, Bihar- 800013. (PAN: AACCG2359P) Vs ITO, Ward-2(1), Patna (Appellant) (Respondent) Present for: Appellant by : Shri Nishant Maitin, CA Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 25.02.2025 Date of Pronouncement : 25.02.2025 O R D E R Per Bench : This is an appeal 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 no. ITBA/NFAC/S/250/2023-24/1055070123(1) dated 11.08.2023 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2014-15. 2. Shri Nishant Maitin, CA appeared on behalf of the assessee and Shri Ashwani Kr. Singal, JCIT appeared on behalf of the revenue. 2 ITA No.364/Pat/2024 Ramakant Singh Erst Director- GMC Icecreams Pvt. Ltd. (Stricken off), AY: 2014-15 3. It was submitted by the Ld. AR that there was a delay of 229 days in filing the appeal before the Tribunal. It was the submission that the assessee company GMC Ice creams Pvt. Ltd. (in short “GMC”) has been struck off from the Registrar of Companies w.e.f. 14.07.2017 and was as such not functional and, therefore, notices that no details were known available to the assessee who was filed the appeal, who is the erstwhile director of the said company. It was the submission that due to the said cause the delay of 229 days may be condoned. 4. The Ld. Sr. DR vehemently opposed the condonation of delay. 5. We have heard the rival submissions. The assessee has produced before us the certificate of Registrar of Companies and Official Liquidator, Patna, Bihar, wherein it has been recorded that the Company GMC U51220BR1992PTC004763 has been struck of vide STK 7 dated 14.07.2017. Admittedly, the assessee company having been struck off the erstwhile director would not have noticed of the proceedings. This being so, we find that the reasons given in the condonation of delay petition is valid and consequently condone the delay and dispose of this appeal on merits. 6. It was submitted by the Ld. AR that notice u/s. 148 of the Act dated 31.03.2021 had been issued in respect of the assessment year 2014-15. It was the submission that notice u/s. 142(1) of the Act has also been issued on 20.07.2021. It was the submission that when the director of the assessee company came to know of the notice, he immediately intimated the AO that the Company has been struck off from the Registrar of Companies. It was the submission that even after that the Assessing Officer proceeded with the assessment on the ground that the PAN has not been extinguished. It was the submission that the Assessing Officer thus, 3 ITA No.364/Pat/2024 Ramakant Singh Erst Director- GMC Icecreams Pvt. Ltd. (Stricken off), AY: 2014-15 recognised that the erstwhile director had intimated that the Registrar of Companies has struck of the assessee company. It was the submission that the assessment order passed may be quashed in the interests of justice as the assessee company does not exist. 7. In reply, the Ld. Sr. DR vehemently supports the orders of the Assessing Officer and the Ld. CIT(A). 8. We have considered the rival submissions. Admittedly, the assessee company no more exists w.e.f. 14.07.2017 when the company itself is non- existent the service of the notices u/s. 148 and 142(1) of the Act much after the striking off the name of the assessee from the Registrar of Companies amounts to service of notice on a non-existent person. The erstwhile director of the assessee company has also intimated the non-existence company to the Assessing Officer. As the assessee no more exists with the striking off of its name from the Registrar of Companies any proceedings against such non-existent company is permissible under the Income Tax Act, 1961. Consequently, the orders of the Assessing Officer and the ld. CIT(A) are quashed. 9. In the result, the appeal of the assessee is allowed. Order pronounced in the open court. Sd/- Sd/- (Sanjay Awasthi) (George Mathan) Accountant Member Judicial Member Dated: 25th February, 2025 JD, Sr. P.S. 4 ITA No.364/Pat/2024 Ramakant Singh Erst Director- GMC Icecreams Pvt. Ltd. (Stricken off), AY: 2014-15 Copy to: 1. The Appellant: Ramakant Singh Erst Director- GMC Icecreams Pvt. Ltd. (Stricken off), Patna 2. The Respondent. ITO, Ward-2(1), Patna 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Patna Bench, Patna 6. Guard file. True Copy By Order Assistant Registrar ITAT, Patna "