Amizara Construction Pvt. Ltd. Vs ITO (ITAT Surat)
The appeals before the Income Tax Appellate Tribunal, Surat Bench arose from reassessment proceedings for Assessment Years 2010–11 and 2012–13, where the assessee challenged the validity of reassessment and the powers exercised by the Commissioner of Income Tax (Appeals) [CIT(A)] after the company’s name had been struck off by the Registrar of Companies (ROC).
For AY 2010–11, the assessee company did not file a return of income. Based on information that substantial cash deposits had been made in the company’s ICICI Bank account during FY 2009–10, the Assessing Officer (AO) reopened the assessment under Section 147 and issued notice under Section 148 on 31.03.2017. During assessment proceedings, it was stated by the director that the company’s name had been struck off by the ROC with effect from 21.06.2017 and that the affairs were managed by her deceased husband. It was claimed that cash deposits represented funds generated by discounting the company’s own cheques due to shortage of funds. However, no documentary evidence was produced to substantiate the explanation.
As the assessee failed to file a return or provide supporting documents despite repeated opportunities, the AO completed the assessment ex parte under Section 144 read with Section 147 and treated cash and credit entries aggregating to ₹1.56 crore as unexplained income. On appeal, the assessee contended that the reassessment itself was void as it had been framed on a non-existent entity. The CIT(A) rejected this contention, noting that the reassessment notice under Section 148 was issued before the company was struck off, that the bank account and PAN continued to be operative, and that there was no evidence that the striking off had been intimated to the Income Tax Department. Exercising powers under Section 251(1), the CIT(A) set aside the assessment and remanded the matter to the AO for fresh adjudication after granting due opportunity.
