M/S. AHEAD ENTERPRISES LTD.,NEW DELHI vs. DCIT, FARIDABAD

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ITA 2567/DEL/2017Status: DisposedITAT Delhi09 September 2020AY 2010-116 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order was not justified as the assessee company did not exist on the date the notice was issued. The notice was issued in the name of a non-existing entity.

What were the facts?

A search was conducted on M/s. SRS Group, and subsequently, a notice under section 153A/153C was issued to M/s. Ahead Enterprises Ltd. for AY 2010-11. The assessee filed a return, and the Assessing Officer made an addition of Rs. 47,46,688.

What were the issues?

The primary issue was the validity of the assessment proceedings initiated under Section 153A/153C when the assessee entity did not exist at the time of notice issuance.

Which sections of the Income-tax Act were involved?

Section 153A,Section 153C,Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

For Appellant: Adv. यथ क ओर से /
Hearing: 06.08.2020Pronounced: 09.09.2020

आदेश आदेश PER SUSHMA CHOWLA, VP

The present appeal is filed by the assessee against order of CIT(A), Karnal relating to assessment years 2010-11 against the order passed under section 153A r.w.s 143(3) of the Income-tax Act, 1961 (in short ‘the Act’).

2 Assessment Year: 2010-11

2.

The issue raised vide Ground No.1 is the jurisdictional issue and we

proceed to address the same before adjudication of other issues raised on merits. Ground of appeal raised by the assessee is as under:-

1.

“That having regard to the fact and circumstances of the case, Ld.CIT(A) has erred in law and on facts in confirming the action of Ld.AO in assuming jurisdiction and issuing of notice u/s 153A r.w.s. 153C of the Act, more so when the notice was issued in the name of non-existing entity.”

3.

Briefly in the facts of the case, search u/s 132 of the Act was carried out

at the residential as well as business/office premises of M/s. SRS Group of cases on 09.05.2012. The Assessing Officer in accordance with provision of section 153C r.w.s 153A of the Act, issued notice dated 10.11.2014, requiring

it to file return of income in respect of Assessment Year 2010-11. In response

thereto, the assessee filed return of income declaring Rs.25,26,830/-.

Thereafter, the case of the assessee was taken up for scrutiny. An addition

was made in the hands of the assessee totaling Rs.47,46,688/-. The assessment order was passed in the name of the assessee i.e. M/s. Ahead

Enterprises Ltd.

4.

Before the CIT(A), the assessee raised preliminary issue that the assessment order was not justified since the assessee’s company did not exist

on the date of issue of notice u/s 153C r.w.s. 153A of the Act. The case of the assessee before the CIT(A) was that no assessment Could be made in the name

of company, if its names had been struck off from the

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