INCOME TAX OFFICER 2(3) (1), MUMBAI vs. M/S. SILVERLINE TRADING COMPANY, MUMBAI

This appeal is filed by Income Tax Officer, ward 2(3)(1), Mumbai against the order passed by National Faceless Appeal Centre, Delhi [the learned CIT (A)] for A.Y. 2011- 12 dated 1st November, 2021, wherein the appeal filed by the assessee against the assessment order passed under Section 147 read with section 144 of the Income-tax Act, 1961 (the Act), by ITO Ward, 2(3)(2), Mumbai (the learned Assessing Officer) was allowed, therefore the learned Assessing Officer is aggrieved with that order and has preferred this appeal raising following grounds of appeal:-

The brief facts of the case shows that the assessee is a domestic company engaged in the business of ferrous and non ferrous metal. Assessee has not filed its return of income for A.Y. 2011-12. Notice under Section 148 of the Act was issued on 27th March, 2015. It was responded by filing return of income on 22nd January, 2016 at ₹ nil. The case of the assessee was reopened as assessee is non filer and the information was available that it has entered into a cash transaction exceeding ₹ 10 lacs. During the course of assessment proceedings, it was found that assessee is having a bank account in Sadar Bazaar Branch of ICCI Bank, whereas it disclosed only one bank account with

Aggrieved with that assessee preferred an appeal before the learned CIT (A) and stated that learned Assessing Officer despite having knowledge that assessee is a non existing company passed an assessment order in the name of the company. It was stated before the learned CIT (A) that appellant is a dissolved and non existing company which was intimated to the learned Assessing Officer vide letter dated 15th December, 2015 along with certificate of Registrar of Companies dated 18th March, 2011. It was also stated that co-ordinate Bench in assessee’s own case for A.Y. 2007-08, which was subjected to 263 proceedings has categorically held that company is not in existence on the date of order passed under Section 143(3) read with section 147 of the Act and

The learned Departmental Representative vehemently supported that the order of the learned Assessing Officer is correctly passed in the name of the assessee company.

Despite notice, none appeared on behalf of the assessee and therefore, the appeal is decided on the merits of the case as per information available on record.

We have carefully considered the contentions of the learned Departmental Representative. However, we note the fact that company has already been dissolved and is not in existence since 18th March, 2011. The copy of the registrar of companies certificate was also submitted before the learned Assessing Officer vide letter dated 15th December, 2015. Despite this, the notice under Section 27th March, 2015 culminated into the assessment order passed in case of a non existing company i.e. ‘Silver Line Trading Pvt. Limited’. The issue has already been decided in assessee’s own case by the ITAT which was followed by the learned CIT (A). This issue is also covered by the

In the result, appeal filed by the learned Assessing Officer is dismissed.