Brief of the case:
In the case of Advance India Projects Ltd. Vs. ACIT Delhi bench of ITAT have held that assessment upon a dissolved company is impermissible as there is no provision in Income-tax Act, 1961 to make an assessment thereupon. ITAT saw that the company, against which notice u/s 148 was issued along with assessee, had amalgamated in the assessee company. Further ITAT observed that there are many error in the issuance of notice and ITAT held that assessment is liable to quash.
Facts of the case:
- The assessee engaged in real estate business had filed its return of income at Rs.9,68,170 which was processed under sec. 143(1).
- Search was conducted on 18.1.2007 and assessment was framed under sec. 153A/143(3) of the Income-tax Act, 1961 on 31.12.2008 on the same income.
- On 30.3.2012, notice under sec. 148 of the Act was issued and reasons recorded were supplied to the assessee on 11.02.2013.
- Notice under sec. 142(1) of the Act was issued on 11.3.2013 along with query regarding investment of Rs.45 lacs and the reassessment was completed on 26.3.2013 under sec. 147/143(3) of the Act.
- In the reassessment, the AO made an addition of Rs.45 lacs under sec. 68 of the Act on account of alleged accommodation entries in respect of investment in the share capital.
- Magpie Projects Pvt. Ltd. was amalgamated w.e.f. 01.04.2011 with Advance India Projects Ltd.
- A notice u/s 148 was also issued against Magpie Projects Pvt. Ltd. on30.3.2012.
Contention of the assessee:
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