Loading judgment…
Facts
The assessee firm, engaged in civil and infrastructure business, was converted into a company. The AO initiated proceedings under Section 147 for non-filing of return of income and treated receipts as unexplained money. The CIT(A) set aside the AO's order for proper examination of legal entity and income disclosure by the successor company.
Held
The Tribunal held that assessments cannot be conducted on a non-existent entity and that the department was aware of the conversion. The additions made in the hands of the assessee firm, which had ceased to exist, cannot be sustained.
Key Issues
Whether assessment can be framed in the name of a non-existent entity after its conversion into a company, and if income declared by the successor company should be considered.
Sections Cited
147, 148, 142(1), 144, 69A, 251(1), 154, 276CC, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad
आदेशकी �ितिलिप अ�ेिषत/ Copy of the order forwarded to:- 1. िनधा�रती/The Assessee : Shri CH Marthanda Rao and Co., C/o B.Narsing Rao & Co., LLP, Plot No.554, MLA Colony, Jubilee Hills, Hyderabad 2. राज�/ The Revenue : The ITO, Ward-14(1), Aayakar Bhawan, Hyderabad 3. The Principal Commissioner of Income Tax, Hyderabad 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, हैदराबाद / DR, ITAT, Hyderabad 5. गाड�फ़ाईल / Guard file
आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Hyderabad