No Revisional order can be Framed u/s 263 of Income Tax Act by CIT(A) in the Name of a Non-Exsiting Entity: ITAT Quashes Order [Read Order]

The New Delhi bench of the Income Tax Appellate Tribunal (ITAT quashed the order passed by the Commissioner of Income Tax (Appeals) framed under section 263 of the Income Tax Act,1961 in the name of the non-existing entity. 

Chemester Food Industries Pvt. Ltd, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for initiating the revision proceedings framed under section 263 of the Income Tax Act. 

Ranjan Chopra, the counsel for the assessee contended that the assessee had categorically intimated that the firm had been dissolved and was succeeded by Chemester Food Industry. 

It was further submitted that the assessee had enclosed PAN Card, take over or sanction deed, certificate of incorporation, memorandum and article of association, dissolution deed and dissolution certificate, and contractors and shareholders details of the company Chemester Food Industry. 

Parmita M. Biswas, the counsel for the revenue relied on the decision made by the lower authorities and contended that the revision proceedings initiated under section 263 of the Income Tax Act were as per the law and sustainable. 

The bench observed that the assessment order had been framed in the name of a non-existing entity, the same deserves to be quashed and as the assessment order was non-estimate the assumption of jurisdiction under section 263 of the Income Tax Act by the Commissioner was bad in law and are liable to be deleted. 

The two-member bench comprising N.K. Billaiya (Accountant) and Anubhav Sharma (Judicial) held that revision jurisdiction framed under section 263 of the Income Tax Act was not as per the law and liable to be quashed while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates