Appeal dismissed due to invalid reassessment against non-existent entity and change of opinion.

The Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision that the reassessment was invalid due to being initiated against a non-existent entity and based on a change of opinion. Consequently, the addition of unaccounted income and disallowance of depreciation were deemed academic, with the reassessment order being void ab initio.

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Issues Involved:
1. Validity of reopening assessment under section 147.
2. Addition of Rs.1.86 crores as unaccounted income.
3. Disallowance of depreciation claimed on building amounting to Rs.2,61,180/-.

Detailed Analysis:

1. Validity of Reopening Assessment under Section 147:
The Revenue appealed against the order of the Commissioner of Income-tax (Appeals) [CIT(A)], which quashed the reopened assessment proceedings for AY 2008-09. The CIT(A) found that the reopening was based on a change of opinion and was initiated against a non-existent entity. The assessee-company was dissolved by the Ministry of Corporate Affairs on 06.07.2011, and this dissolution was communicated to the Assessing Officer (AO). The notice under section 148 was issued on 19.10.2012, after the company had ceased to exist, rendering the notice void ab initio. Additionally, the reopening was based on audit objections without any new material or information, which is not permissible under law. The Tribunal upheld the CIT(A)'s decision, affirming that the reassessment order was void ab initio.

2. Addition of Rs.1.86 Crores as Unaccounted Income:
The AO added Rs.1.86 crores to the assessee's income, alleging it was not accounted for in the return. The assessee contended that this amount was a deferred consideration contingent on achieving certain profit targets, which were not met, and thus the amount was never received. The CIT(A) accepted the assessee's explanation and deleted the addition. The Tribunal noted that since the reassessment was invalid, the adjudication of this ground became academic.

3. Disallowance of Depreciation Claimed on Building Amounting to Rs.2,61,180/-:
The AO disallowed the depreciation claimed on the building, arguing that the asset was sold and not used for business purposes in the relevant year. The assessee argued that the building was a depreciable business asset and was given on rent pending sale. The CIT(A) deleted the disallowance, and the Tribunal, affirming the invalidity of the reassessment, found this issue academic as well.

Conclusion:
The Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s order that the reassessment was invalid due to being initiated against a non-existent entity and based on a change of opinion. Consequently, the issues of unaccounted income and disallowed depreciation were rendered academic.

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