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Judgment
PER SHRI M BALAGANESH, ACCOUNTANT MEMBER:
The appeal in ITA No.9121/Del/2025 filed by the revenue and CO 60/Del/2026 filed by the assessee for AY 2017-18, arises out of the order of the ld. Jt. Commissioner of Income Tax (Appeals)-10, Mumbai [hereinafter referred to as ‘ld. JCIT(A)’, in short] dated 14.10.2025 against the order of assessment passed u/s 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 14.03.2024 by the Assessing Officer, ACIT, Circle-10(1), Delhi (hereinafter referred to as ‘ld. AO’).
The revenue has raised the following grounds of appeal:
1)Without prejudice, on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT(A) erred in quashing the rectification order dated 14.03.2024 passed under section 154 as void ab initio, without appreciating that the rectification was made to correct a mistake apparent from record, namely that the assessment order had denied TDS credit of Rs. 88,18,594/- whereas the computation sheet had inadvertently allowed the same.
2)Without prejudice, on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT(A) erred in holding that the rectification order under section 154 is in contravention of the NCLT order dated 02.02.2021 and therefore does not survive, without appreciating that the rectification order only aligned the computation with the express finding in the assessment order and did not CRAETE any new liability OR raise any demand.
3)Without prejudice, on the facts and in the circumstances of the case and in law, the Ld. Addl/JCIT(A) erred in not appreciating that the assessment order had clearly held that the assessee was not entitled to TDS credit of Rs. 88,18,598/- for A.Y. 2017-18 due to non-offering of corresponding income in this year and non-compliance to opportunities, and therefore the rectification merely gave effect to what was already concluded in assessment.
4)The Ld. CIT(A) has erred in law and on facts in holding that the order passed u/s 154 dated 14.03.2024 is ab initio void merely on the ground that the assessee company was no more in existence, without appreciating the factual position that the assessee company was active and existing as per the MCA portal on the date of passing of the rectification order. 5) The appellant craves leave to add, alter, amend OR withdraw any ground of appeal at any time before OR during the hearing of the appeal.
We have heard the rival submissions and perused the material available on record. The Assessee was incorporated on 02 August 2007 in the name of IL&FS Waste Management and Urban Services Limited. The name of the Company was changed to IL&FS Environmental Infrastructure and Services Limited on 13 December 2010 and was a part of IL&FS group. Post National Company Law Tribunal ("NCLT") resolution, EverEnviro Resource Management Private Limited ("ERMPL") acquired the entire shareholding of the Assessee and became the ultimate Holding Company with effect from 06 April 2021, and consequent changes of name, the Assessee herein is now known as Indo Enviro Integrated Solutions Private Limited with effect from 12 October 2022.
The ld AR placed on record the copy of the order of the National Company Law Tribunal (NCLT) dated 02.02.2021, wherein, the cut off date was fixed as 15.10.2018 meaning thereby all claims of all the creditors including the Central Govt, any State Govt., statutory, local, tax or regulatory authority to whom such claim is owed under any law which pertain to a period prior to 15.10.2018 and all liability, whether actual or contingent, whether existing at or relating to a period prior to 15.10.2018 in respect of IL & FS Environment and Infrastructure, Dakshin Dilli Swachh Initiative Ltd; Swayam Swachatta Initiative Ltd, shall stand unconditionally and fully extinguished. In the instant case, the assessment order for AY 2017-18 was passed u/s 143(3) on 30.09.2021 and rectification order u/s 154 of the Act was passed on 14.03.2024. It could be seen that both the assessment order as well as the rectification order are in relation to the period post the cutoff date i.e. 15.10.2018. Hence, as per the decision of the Hon'ble Supreme Court in the case of Ghanashyam Mishra & Sons (P) Ltd Vs. Edelweiss Asset Reconstruction Co. Ltd (2021) 126 taxmann.com 132 (SC), the demands raised pursuant to the aforesaid assessment order and rectification order becomes irrecoverable.
In view of the above, the appeal of the revenue is dismissed and cross objection of the assessee is dismissed.