Case Law Details
Bagora Developers Pvt. ltd. Vs ACIT (ITAT Indore)
In a recent appeal case between Bagora Developers Pvt. Ltd. and the Assistant Commissioner of Income Tax (ACIT) in the Indore region, a number of intriguing issues surrounding tax assessment came to the fore. The case, which pertained to the assessment year 2011-12, brought into question the validity of an assessment order, along with several other grounds raised by the Assessee.
One of the primary contentions raised by the Assessee was the delay in filing the appeal, which amounted to 323 days. However, the Assessee filed an application for condonation of this delay, citing reasons such as the Covid-19 pandemic, which impacted the timely filing of the appeal. The Tribunal considered this argument in light of a pertinent judgment of the Hon’ble Supreme Court regarding the extension of limitations during exceptional circumstances. Consequently, the delay was condoned, and the appeal was deemed within the limitation period.
The Assessee had raised multiple grounds of appeal, including challenges against the assessment order, the validity of assessing income in the hands of a non-existent entity during the relevant financial year, and objections to the imposition of interest and initiation of penalty proceedings under various sections of the Income Tax Act.
Of particular interest was Ground No. 2, which contested the validity of the assessment order on the basis that the Assessee company was non-existent during the relevant financial year. The Assessee argued that since the company was incorporated subsequent to the period in question, no assessment could be framed against it. However, the Tribunal, upon careful consideration of the facts and submissions, rejected this argument. It emphasized that the transaction in question was conducted in the name of the Assessee, with the sale deed duly executed by its directors. Thus, the entity’s legal form at the time of assessment was deemed irrelevant, as it had not disowned the transaction.
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