SHRI RAM MULTICOM PVT. LTD.,KOLKATA vs. A.C.I.T., CC - 3(4), , KOLKATA

The issue raised in first ground of appeal is against the assessment framed by the ACIT Circle 3(4), Kolkata u/s 144 of the Act dated 31.12.2019, without having jurisdiction over the assessee although, the assessee firm merged with Ram Multicom Pvt. Ltd. (PAN No. AAECS5277N) by an agreement dated 01.04.2008 and therefore, the assessment passed is invalid and nullity.

The ld. CIT (A) affirmed the order of ld. AO without giving any concrete finding on the ground that the PAN of Shri Ram Distributors is still active and therefore the appeal is not maintainable.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee firm was merged with Shri Ram Multicom Pvt. Ltd. with effect from 01.04.2008, taking over all the assets and liabilities and thereafter the assessee firm discontinued filing of its return of income as it ceased to exist from that date. We note that the assessee has incorporated all the assets and liabilities in the books of accounts of Shri Ram Multicom Pvt. Ltd. including the bank accounts. The assessee has produced before us ITR-6, filed by the said company and in the details of bank accounts, we observed that the bank account on the basis of which the ld. AO made the addition i.e. Axis bank account no.1720102004947 was appearing in the assets in balance sheet of the said company. Thus, this is abundantly clear that the deposits into the said bank account have been considered in the

In the result, the appeal of the assessee is allowed.