Case Law Details
Chandan Realtors Pvt. Ltd Vs ITO (ITAT Mumbai)
The case of Chandan Realtors Pvt. Ltd vs ITO, adjudicated by the ITAT Mumbai, delves into the contentious issue of director liability post-company dissolution. This article analyzes the court’s ruling, providing insight into the legal framework and implications for stakeholders.
The crux of the matter revolves around the validity of notice u/s 148 of the Income Tax Act issued to Chandan Realtors Pvt. Ltd, a company dissolved under Section 248(5) of the Companies Act. The Assessing Officer reopened the assessment citing undisclosed income, triggering a legal battle over the company’s status and director liability.
While the appellant contended that the notice and subsequent assessment were invalid due to the company’s dissolution, the Revenue argued that director liability persists even post-dissolution under Section 250 of the Companies Act, 2013.
The Tribunal examined pertinent provisions of the Companies Act, emphasizing Section 248(7) and Section 250, which sustain director liability for discharging company obligations. Citing precedents like Gopal Shri Scrips (P) Ltd, the Tribunal affirmed the validity of the notice, rejecting the appellant’s challenge.
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