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2023 (1) TMI 26 - AT - Income TaxAddition u/s 68 - tax was levied u/s 115BBE and 115BBC of the Act on the ground that the said entities are being presently struck off record of registered companies - Registrar of companies have struck off their names and taken action for non compliance under the Companies Act, whereas the said entities are continued to be regularly assessed under the Income Tax and are recognized entities - HELD THAT:- Existence of the donors are in question. The counsel for the assessee had failed to file the effective date of striking off the companies and also placed reliance on the judgment of the Hon’ble Apex Court and the ITAT, Delhi, supra. As in case of Patanjali Yogpeeth [2017 (2) TMI 781 - ITAT DELHI] to support the proposition that corpus donation is nature of capital receipt, which are not liable for tax as income. In the case of Hon’able Apex Court [2019 (3) TMI 703 - SUPREME COURT] held that Appeal proceedings can continue even in case of company whose name has been struck off from Register of Company under section 560(5) of the Companies Act, 1956. But in factual matrix both the judgments are not similar with assessee’s fact. Section 68 is governed by the four necessary ingredients and one of them is existence of the party. In any case the existence of the party in question. In the companies act there are different process to restore the companies& removal of strike off. The assessee was unable to produce any documents in support of their action to restore the donor-company before the judicial authority. Accordingly, the question was unanswered related to the identity of the corporate bodies to prove the existence related the transaction of assessee. We find no infirmity in the order of the ld. CIT(A). So, the addition made by the ld. AO is upheld. Appeal of the assessee is dismissed.
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