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2015 (8) TMI 46 - ITAT HYDERABAD

2015 (8) TMI 46 - ITAT HYDERABAD - TMI - Reopening of assessment - addition u/s 68 - whether assessment on the company which is liquidated and struck off by the Registrar of Companies is invalid - Held that:- AO has invoked the provisions of section 147 and served the notice on a company which is altogether a different company and has also issued notice u/s 142(1) to the erstwhile Director who has already submitted that the company which has been assessed has been liquidated on 25.03.2008. We ar .....

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ijayaraghavan, JJ. For the Petitioner : Shri Rajat Mitra, DR For the Respondent : Shri K.C. Devdas ORDER Per Smt. Asha Vijayaraghavan, J.M. These are the appeals preferred by the Revenue against the order of the Commissioner of Wealth Tax (Appeals) VII, Hyderabad dated 30.09.2014 for A.Y 2004-05: ITA No.1877/Hyd/2014 1. The assessee is an individual and the erstwhile Director of a liquidated company M/s Pallavi Real Estates & Developers Pvt. Ltd. The assessment which was appealed against bef .....

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ompany dated 14.03.2011. Further notice u/s 148 was served on M/s SRSR Advisory Pvt. Ltd (another company). It was further stated that in response to the notice issued u/s 148 to the company, the erstwhile Director of the company Shri N.S.L.R. Prasad Raju replied that the company was liquidated on 25.03.2008. Assessment proceedings continued by way of issue of notice u/s 142(1) dated 16.08.2011. 3. Shri N.S.L.R. Prasad Raju again replied to the AO that the company is no longer in existence and i .....

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re capital 1,00,000 Share Application Money 24,00,000 Outstanding liabilities 3,91,33,166 Total 4,16,33,166 4. AO held that no information or confirmation in respect of funds were filed and treated the entire amount of ₹ 4.16 crores as unexplained credit u/s 68 and raised a tax demand of ₹ 2.88 crores on the company M/s Pallavi Real Estates & Developers Pvt. Ltd. Aggrieved, assessee preferred appeal before the CIT (A). 5. The AR stated before the CIT (A) that assessment on the co .....

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g the process of liquidation and is yet to be liquidated or where there are any tax dues/liability of a liquidated private company, which cannot be recovered. These provisions were made so that what is due to the State is recovered. By no stretch of imagination these provisions can be extended to make an assessment on a company liquidated four years ago and that too by invoking the provisions of section 148 and that too serving the notice on an altogether different company, a separate legal enti .....

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rabad erred in holding that jurisdiction over the assessee was not vesting with AO. 3. The ld CIT (A)VII Hyderabad erred in holding that no order could be passed on the liquidated companies. 4. The ld CIT (A) VII Hyderabad erred in holding that the notice was not served on the assessee. 7. We heard both parties. We find that the AO has invoked the provisions of section 147 and served the notice on a company which is altogether a different company and has also issued notice u/s 142(1) to the erst .....

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1. The assessment which was being appealed against before the CIT (A) is on the company M/s Ugandhar Estates Pvt. Ltd for A.Y 2004-05. AO completed assessment u/s 144 r.w.s. 147 of the I.T. Act. On 30.12.2011. The only addition made was u/s 68 was ₹ 4,26,50,380. 2. The facts of the case are that original return of income of the company for the year under consideration was filed on 8.11.2004, returning an income of ₹ 1,04,918. The company was liquidated on 15.03.2008 and notice u/s 1 .....

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which is as follows: By no stretch of imagination, these provisions can be extended to make an assessment on a company liquidated four years ago and that too by invoking the provisions of section 148 and that too serving the notice on an altogether different company (a separate legal entity) and issuing notice u/s 142(1) to the erstwhile Director who repeatedly drew attention of the AO to the liquidated status of the company . 4. Since we have already decided similar issue in ITA No.1877/Hyd/201 .....

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original return of income for A.Y was filed on 8.11.2004 returning an income of ₹ 1,46,880. The company was liquidated on 27.03.2008 and notice u/s 148 was issued on the company on 14.03.2011. Notice u/s 148 was served on M/s SRSR Advisory Pvt Ltd. In response to the notice issued u/s 148 to the company, the erstwhile Director of the company Sri D. Srinivasa Raju replied that the company was liquidated on 27.03.2008. Assessment proceedings continued by way of issue of notice u/s 142(1) dat .....

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against before the CIT (A) was on the company M/s Yeshwant Property Developers Pvt. Ltd for A.Y 2004-05, AO completed the assessment u/s 144 r.w.s. 147 of the I.T. Act on 30.12.2011. The demand raised was ₹ 2,88,30,896. The only addition made u/s 68 was ₹ 4,16,36,625. 2. Briefly stated, the original return of income of the company for A.Y 2004-05 was filed on 8.11.2004 returning an income of ₹ 1,40,090. The company was liquidated on 27.03.2008 and notice u/s 148 was issued on .....

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