CH MARTHANDA RAO AND CO,HYDERABAD vs. ITO., WARD - 14(1), HYDERABAD

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ITA 962/HYD/2025Status: DisposedITAT Hyderabad30 September 2025AY 2014-15Bench: us: "1. The order of the Ld. CIT(A), NFAC is erroneous in law as well as the facts of the case.1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that an assessment cannot be made on a non-existent entity. Since the firm had ceased to exist upon conversion into a company, the assessment in its name was invalid. The matter was remanded to the AO for fresh assessment.

What were the facts?

The assessee firm was converted into a company in 2012. The Assessing Officer (AO) initiated reassessment proceedings against the firm for AY 2014-15 and 2015-16, treating its receipts as unexplained income. The CIT(A) set aside the AO's order, directing a fresh assessment.

What were the issues?

Whether assessment proceedings initiated against a firm that has ceased to exist due to conversion into a company are valid. Whether income disclosed by the successor company should be considered.

Which sections of the Income-tax Act were involved?

Section 69A,Section 147,Section 148,Section 142(1),Section 144,Section 251(1),Section 154

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Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad

For Appellant: Shri Madan Mohan Meena

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

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