Flightpath Aviation Institute Pvt Ltd. Vs ITO (ITAT Kolkata)
Reopening Notice on Struck-off Company Invalid: ITAT Kolkata Quashes Section 148 Notice and Entire Assessment
The Kolkata ITAT allowed the assessee’s appeal for AY 2010-11 and quashed both the notice issued under Section 148 and the consequential assessment order, holding that proceedings initiated against a struck-off company are void ab initio. The assessee company had been struck off from the Register of Companies with effect from 29.08.2016, much prior to issuance of the reopening notice dated 29.03.2017. This fact was also duly brought to the notice of the Assessing Officer through letters dated 06.10.2017 and 16.12.2017.
The Tribunal first condoned the long delay of 706 days in filing the appeal, accepting the explanation that the company had been struck off and both directors were incapacitated due to old age and illness. On merits, it held that once the company stood dissolved by the Registrar of Companies, it ceased to exist in the eyes of law and no valid proceedings could be initiated against it. Issuance of notice under Section 148 to a non-existent entity was therefore invalid and without jurisdiction.
Consequently, the reopening notice and the entire assessment framed in pursuance thereof were quashed as non-est in law, and the assessee’s appeal was allowed in full
FULL TEXT OF THE ORDER OF ITAT KOLKATA
