TaxTMI 
TaxTMI 
2022 (4) TMI 30
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....as many as six grounds, but solitary issue involved in this appeal is that the ld. CIT(A) has erred in confirming disallowance of Rs. 1,13,65,136/- on account of loss incurred out of trading in shares. 3. Facts in brief, necessary for adjudication of this appeal are that the assessee-company was trading in shares. It has filed return of income for the assessment year 2015-16 on 30.9.2015 declaring income at a loss of (-) Rs. 6,67,527/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) of the Act was issued and served upon the assessee. Ultimately, the assessment was concluded by the AO by making addition of Rs. 1,13,65,136/- under section 68 of the Act on account of unexplained cash and unexpl....
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....ove the Company is non-existence as of today & has no assets available which is undistributed, which please note. Further, letters dated 08th July 2017, 19th July, 2019 & 16th August, 2019 were submitted to the income under whose jurisdiction the Corporate Debtor was assessed intimating the appointment of resolution professional, appointment of liquidator and before making the application for of the Company. Inspite of intimation, public announcement published in newspaper and the letters as cited above there was no communication from Income Tax department nor any claim lodge at any point of time, which please note. On Dissolution, Assistant Commissioner of Income Tax, circle 3(2)(1) was also intimated by the unde....
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....and do the needful." 5. In view of this development, Shri Umed Ved, former Liquidator of the assessee-company submitted that the assessee-company is non-existent as of today and has no assets available to be distributed. Jurisdictional Income Tax Officer has been appraised of the development from time to time in writing but neither any communication nor any claim was lodged by the Department at any point of time. Therefore, relying upon the judgment of Hon'ble Supreme Court in the case of Ghanashyam Mishra & Sons Vs. Edelweiss Assets Reconstruction Company Limited, in Civil Appeal No. 8129 of 2019 wherein Hon'ble Apex Court held that on the date of approval of resolution plan by the Adjudicating Authority, all such claims, which ....
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.... speak of any reply from the Income Tax Department. vi) Dissolution of the company was ultimately intimated to the Asstt. Commissioner of Income-tax, Cir. 3(2)(1) vide letter 2.7.2020 by the Liquidator. 7. We have heard both the parties and also gone through the materials placed before us. When we confronted the above letter of Shri Umesh Ved, former OL along with relevant annexures to the Ld. Departmental Representative, he has not disputed factum of the matter, or the present legal status of the assessee-company as being a non-existent entity. This being so, issue for our adjudication is about maintainability of appeal of the assessee-company before the ITAT and enforceability of tax demand raised by the Department in the impu....
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.... 31 could be continued. 9. In this connection, it is imperative upon us to extract relevant observation of the Hon'ble Supreme Court in the case of Ghanshyam Mishra & Sons Vs. Edelweiss Asset Reconstruction (supra) contained in para-130 and 132 of the judgments, which are as follows: "130. In the foregoing paragraphs, we have held, that 2019 amendment to Section 31 of I & B Code is clarificatory and declaratory in nature and therefore will have a retrospective operation. As such, when the resolution plan is approved by NCLT, the claims, which are not part of the resolution plan, shall stand extinguished and the proceedings related thereto shall stand terminated. Since the subject matter of the petition are the proceedings, w....