Case Law Details
ITO Vs Silverline Trading Company Ltd. (ITAT Mumbai)
In the case of Income Tax Officer (ITO) vs. Silverline Trading Company Ltd., the Income Tax Appellate Tribunal (ITAT) in Mumbai addressed the validity of assessment orders issued against a company that no longer existed. Here’s a detailed summary of the case:
The appeals, ITA No. 2234/Mum/2023 for Assessment Year (A.Y.) 2008-09 and ITA No. 2253/Mum/2023 for A.Y. 2009-10, were filed by the Income Tax Officer, 2(3)(1), Mumbai, against the appellate order passed by the National Faceless Appeal Centre, Delhi. The appellate order allowed the appeal filed by the assessee against assessment orders dated 29th February 2016. These orders were passed under Section 147 read with Section 144 of the Income-tax Act, 1961 (the Act) by the Income Tax Officer, Ward 2(3), Mumbai. The basis of allowing the appeal was that the assessment orders were made in the name of “Silverline Trading Company Ltd.,” which had been dissolved since 18th March 2011, as per the certificate issued by the Registrar of Companies, Maharashtra, Mumbai, under Section 560(5) of the Companies Act, 1956.
The Departmental Representative argued in favor of the decision of the Hon’ble Delhi High Court in Sky Light Hospitality Llp vs. ACIT. However, the Authorized Representative relied on previous decisions by coordinate Benches in the assessee’s own case for A.Y. 2011-12 and earlier years.
Upon careful consideration, the Tribunal found that the appellant entity, Silverline Trading Company Ltd., ceased to exist since 18th March 2011, as per the certificate issued by the Registrar of Companies. Previous decisions by coordinate Benches in the assessee’s own case had already quashed assessment orders for similar reasons. The Tribunal also referred to a decision by the Jammu and Kashmir and Ladakh High Court, which held that once a company is dissolved under Section 560(5) of the Companies Act, it ceases to exist, and thus, no valid assessment order could be passed against it.
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