Case Law Details
Virender Kumar And Sons Jewellers LLP Vs ITO (Calcutta High Court)
Introduction: The case of Virender Kumar And Sons Jewellers LLP Vs ITO at the Calcutta High Court involves a challenge to an assessment order and notice issued under Section 148 of the Income Tax Act, 1961. The petitioner, Virender Kumar And Sons Jewellers LLP, argued that the notice was invalid as it was issued to a non-existing entity.
Analysis: The petitioner had transformed from a private limited company, Viewpoint Marketing Pvt. Ltd., to a Limited Liability Partnership (LLP) named Virender Kumar and Sons Jewellers LLP. The conversion had taken place in January 2017, and the respondent, the Income Tax Authority, had been informed about the change. Despite this, the impugned notice and order were issued to the non-existing entity.
Upon review, the Court found that the Income Tax Authority couldn’t contradict the petitioner’s claim, which was backed by factual evidence. Considering the parties’ submissions and the evidence presented, the Court decided to quash the impugned order and notice. The dismissal, however, does not prevent the Income Tax Authority from issuing any fresh notice, in line with the law, to the proper entity.
The case signifies the need for administrative authorities to keep their records updated, particularly when dealing with legal entities that have undergone structural changes.
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