TaxTMI 
TaxTMI 
2023 (6) TMI 1469
X X X X Extracts X X X X
X X X X Extracts X X X X
.... That the orders of the ld. PCIT u/s 263 directing het Assessing Officer to frame the assessment afresh is illegal, erroneous, perverse and thus uncalled for and therefore ought to be quashed. 2. That the Appellant disputes the very initiation of the proceedings u/s 263 of the Income Tax Act, 1961 ('the Act') by Ld. Pr. CIT by setting aside assessment orders passed by the Ld. AO u/s 143(3), despite Pr. CIT having himself admitted in the notice issued u/s 263 that the Appellant had filed loan confirmation, bank statement and return of income of lenders to substantiate their genuineness and creditworthiness during the original assessment proceedings u/s 143(3). 3. That the Ld. PCIT erred on facts and in law, in invoking the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssment order was passed. The notices issued u/s 142(1) & 143(2) pursuant to which the Assessing Officer assumed jurisdiction to make an assessment u/s 143(3) was issued in the name of M/s Chemester Food Industry a non-existent firm was invalid, hence initiation of assessment proceeding against the non-existing firm was void ab initio. The appellant disputes the very initiation of the proceedings u/s 263 of the Income Tax Act, 1961 by Ld. Pr. CIT of setting aside assessment order passed." 4. Representatives of both the sides were heard at length. Case records carefully perused. Judicial decisions relied upon by the rival representatives duly considered. 5. The additional ground taken by the assessee goes to the root of the matter. Ther....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Industry Pvt Ltd for your perusal and necessary records. Thanking you (Neeraj Agarwal) " 7. Without giving any cognizance to the afore-stated letter, the Assessing Officer issued notice dated 05.07.2016 in the name of the firm Chemester Food Industry u/s 142(1) of the Act requiring the assessee to produce the accounts/documents. The following questionnaire was attached with the notice: 8. The assessee filed detailed reply, specifically giving details sought by the Assessing Officer vide the aforementioned notice. 9. The reply of the assessee is placed at pages 49 and 50 of the paper Book. 10. Not satisfied with the reply of the assessee, the Assessing Officer once again issued notice dated 18.07.2016 in the n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) of the Act on a going concern basis vide takeover cum succession deed dated 22.03.2014 to a newly formed company under the Companies Act, 1956 M/s Chemester Food Industry. The said takeover-cum-succession deed was also furnished to the Assessing Officer alongwith letter dated 01.04.2014. 14. These clinching evidences were very much before the Assessing Officer who grossly failed to take cognizance of the documents and proceeded in framing the assessment u/s 143(3) of the Act in the name of a non existing person. 15. The Hon'ble Supreme Court in the case of Maruti Suzuki India Ltd 107 Taxmann.com 375 has held that : "Issuance of jurisdictional notice and assessment order thereafter passed in the name of non-existing comp....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... company whereas the facts of the case in hand are that of succession of partnership firm by a company and, therefore, the case laws are distinguishable on facts. 20. We do not find any merit in these submissions of the ld. DR as the issue has been addressed to and decided is whether the order framed in the name of a non existing entity can be subject to revision u/s 263 of the Act. 21. In the result, the appeal filed by the assessee in ITA No.3707/DEL/2019 is allowed. The order is pronounced in the open court on 09.06.2023. ============= Document 1 Notice for hearing for Assessment proceedings w/s 143(3) vide notice u/s 143(2) served. OFFICE OF THE DEPUTY COMMISSIONER OF INCOME-TAX Circle-3, Room No.355, Second Floor, C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....item of each item of raw material 6 lemise details of opening and closing stock and sale /purchase with quantity, quality and value of each item of each item of finished goods. Statements of all bank accounts maintained during the year with bank reconeitation statement and confirmam from use bak including confomation of intcrcat paid. * Details of export sales (certified from government export authority) and expenses as under for year under consideration and last 2 years. Assessment year Item /quality Quantity sold Sale Amount Export expense 8 Unit of electricity consumed during the year under consideration with comparison of last 2 years with bills of electricity and other direct and indirect expenses with ....