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Facts
The assessee's appeal arose from an order of the CIT(A)/NFAC related to assessment year 2019-20, concerning proceedings under Section 147 of the Income-tax Act. The reopening was initiated based on an order dated 28.02.2023, due to the assessee company being struck off by the Registrar of Companies on 20.04.2022.
Held
The Tribunal found merit in the assessee's primary legal ground to quash the reopening. This was because the reopening was initiated against a non-existent entity, as confirmed by the company being struck off.
Key Issues
The primary issue was the validity of the reopening of assessment proceedings initiated against a company that had been struck off and ceased to exist.
Sections Cited
147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal /2025 for assessment year 2019-20 arises against CIT(A)/ NFAC, Delhi’s order dated 25.08.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1079962862(1), in proceedings u/s 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
It emerges during the course of hearing that there arises the first and foremost issue of validity of reopening itself set into motion by the learned precise reason that learned counsel representing the assessee has filed ROC notice/ order dated 20.4.2022 striking off the assessee company under the relevant provision of Companies Act, 2013. This clinching fact has gone unrebutted from the Revenue’s side.
That being the case, the tribunal hereby sees merit in the instant assessee’s first and foremost legal ground to quash reopening itself since initiated against a non-existent entity going by PCIT v. Maruti Suzuki India Ltd. (2019) 107 taxmann.com 375 (SC). Ordered accordingly.
All other remaining pleadings between the parties on merits stand rendered academic.
This assessee’s appeal is allowed. Order pronounced in open court on 27.11.2025.