Assessment on Struck-Off Company Void; Unsigned Order Non-Est in Law

Ekvira Hotels Private Limited Vs ACIT (ITAT Mumbai)

Unsigned, Wrong Year & Dead Company – ITAT Mumbai Quashes Reassessment & Deletes ₹1.12 Cr. Addition; Assessment on Struck-Off Company Void; Unsigned Order Non-Est in Law

Background

• Assessee company (engaged in hotel business since 1997) was struck off by RoC on 23.06.2017 under s.248(5) of Companies Act.
• Based on AIR info that assessee sold immovable property worth ₹1.12 Cr., AO reopened assessment u/s 148 on 27.03.2018.
• Notices returned unserved, no compliance. AO passed ex-parte reassessment u/s 147 r.w.s. 144, taxing entire ₹1.12 Cr. as undisclosed income.
• CIT(A)-NFAC also sustained addition, again ex-parte.

Assessee’s Contentions before ITAT

Reassessment void since:

• Initiated against a non-existent entity (company dissolved in 2017).
• Assessment order & demand notice unsigned and undated → legally non est.
• Transaction pertained to FY 2010-11 (sale deed 21.01.2011) → taxable, if at all, in AY 2011-12, not AY 2012-13.

Tribunal’s Findings

Unsigned Order:

• AO’s order & demand notice lacked any physical/digital signature.
• Without authentication, order is only a draft, void ab initio.

Non-Existent Company:

• Notice u/s 148 dated 27.03.2018 was issued after company’s dissolution.
• Assessment on a dead entity is a jurisdictional defect, incurable even under s.292B.

Wrong Assessment Year:

• Sale deed executed & consideration received in Jan 2011.
• Capital gains, if taxable, belonged to AY 2011-12, not AY 2012-13.

Decision

• ITAT held reassessment order incurably void due to all three defects.
• Entire proceedings quashed; addition of ₹1.12 Cr. deleted.
• Appeal allowed in favour of Assessee.

FULL TEXT OF THE ORDER OF ITAT MUMBAI