Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1205 - AT - Income TaxValidity of reassessment against representative assessee - provisions qua treating any person in India as representative assessee/agent in relation to a Non-resident u/s 163 - AO had issued notice u/s. 163 to the assessee/respondent and assessee failed to respond to the notice issued u/s. 163 - Whether AO without passing order u/s. 163 can treat KRPL/respondent as representative assessee of MVL while completing assessment? - HELD THAT:- As from conjoint reading of section 163 and section 246(1)(d) of the Act, it is unambiguously clear that before treating any person as agent a separate order has to be passed u/s. 163 of the Act, after affording opportunity of hearing to such a person on whom a liability in respect of a Non-resident is to be fastened. In the instance case, we find that though the AO has issued show cause notice u/s. 163 of the Act to KRPL to treat it as representative assessee of MVL for the AYs 2011-12, 2012-13 and 2013-14, but no order u/s. 163 of the Act has been passed by the AO holding KRPL as representative assessee of MVL. The assessment order passed in the name of KRPL treating it as representative of MVL without passing order u/s. 163 of the Act lacks jurisdiction and hence, suffers from incurable legal infirmity. In the instant case though at the time of issuance of notice u/s. 148 of the Act, MVL was very much in existence. Notice u/s. 148 of the Act was rightly issued in the name of MVL. Thereafter, MVL was dissolved on 23/05/2018. The information regarding dissolution of MVL was conveyed to the Assessing Officer on 18/10/2018, yet the Assessing Officer issued notice u/s. 143(2) of the Act in the name of MVL, a non-existing entity. No notice u/s. 143(2) of the Act was served in the name of KRPL. The notice u/s. 143(2) of the Act in the name of a non-existing entity itself makes the assessment null and void. Further, the assessment made in the name of KRPL as representative assessee of MVL without a separate order u/s. 163 of the Act, makes the assessment null and void. Decided against revenue.
|