AGRAWAL IRON TRADERS,ETAWAH vs. INCOME TAX OFFICER WARD 2(2)(5), ETAWAH

This assessee’s appeal for assessment year 2017-18 arises against Commissioner of Income Tax(Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and Order No. ITBA/NFAC/S/250/2023-24/1058312873(1) dated 29.11.2023, involving proceedings u/s 144 of the Income-tax Act, 1961, [hereinafter referred to as the ‘Act’].

Heard both the parties at length. Case file perused.

It emerges during the course of hearing that there arises the first and foremost question of validity of the impugned reopening itself. It is for the precise reason that the assessee herein i.e. M/s Agrawal Iron Traders has been treated as a partnership firm for the purpose of assessing it’s cash deposits whereas the same stood converted as a proprietary concern since 08.07.2007 as per the case records.

That being the case, we are of the considered view that the impugned assessment framed in case of non-existent entity is not sustainable in the eyes of law in light of PCIT Vs. Maruti Suzuki India Lt. (2019) 416 ITR 613 (SC). Quashed accordingly.

This assessee’s appeal is allowed.