Issuance of notice u/s 148 of the IT Act on the date on which a company is longer in existence, is invalid

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI
BENCH ‘SMC’, NEW DELHI
BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER
(THROUGH VIDEO CONFERENCING)
ITA No.402/Del/2020
(Assessment Year : 2011-12)

M/s. S. M. Buildtech Pvt.
Ltd., H-23/9, 2nd Floor,
DLF Phase-1, Gurgaon
Haryana – 122 002
PAN : AAICS 3283 Q

(APPELLANT)

vs

ITO
Ward – 24(1)
New Delhi

(RESPONDENT)

Assessee by Shri Shailesh Gupta, Adv.
Revenue by Shri R. K. Gupta, Sr. D.R.
Date of hearing: 23.09.2021
Date of Pronouncement: 01.10.2021
ORDER

This appeal filed by the assessee is directed against the order dated 03.12.2019 of the Commissioner of Income Tax (Appeals)-8, New Delhi relating to Assessment Year 2011-12.

2. Assessee is a company. AO noted on the basis of the information received from Non Filters Management System (NMS) that even though the assessee had received commission/brokerage amounting to Rs.33,27,228/-, but it had not filed its return of income. Therefore notice u/s 148 of the Act was issued and served on the assessee on 29.03.2018. AO noted that in response to the notice issued u/s 148 of the Act, neither assessee attended the assessment proceedings nor filed any return of income. He therefore on the basis of information available in Form 26AS noted that assessee had received Rs.33,27,228/- as commission/brokerage which he considered to be unexplained cash credit in the assessment framed u/s 144 r.w.s 147 of the Act vide order dated 13.11.2018. Aggrieved by the order of AO, assessee carried the matter before the CIT(A), who vide order dated 03.12.2019 in Appeal No.03/12/2019 dismissed the appeal of the assessee.

3. Having heard the rival submissions and considering the submissions made by the Learned AR and following the decision of Hon’ble Apex Court in the case of National Thermal Power Co. Ltd. (supra), I am of the view that the additional ground raised in the present appeal needs to be admitted. I therefore admit the additional ground.

4. In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 01.10.2021

Please find attached the enclosed file for the full judgement