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Judgment
PER VIKAS AWASTHY, JUDICIAL MEMBER:
This appeal is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 06.05.2026, for Assessment Year 2016-17.
Shri Pankaj Agarwal, appearing on behalf of the appellant submits that the assessment has been made in the name of non-existing entity. The present appeal has been filed by erstwhile director of Oorja Realtors P. Ltd. The ld. Counsel pointed that the name of company Oorja Realtors P. Ltd. was struck off from Register of Companies and was dissolved under the provisions of section 248(5) of the Companies Act, 2013. In support, thereof, the ld. Counsel referred to Notice of Striking Off and dissolution dated 09.07.2018 at page 45 of the paper book. The ld. Counsel submitted that notice u/s.143(2) of the Act dated 14.08.2018 was issued by the Assessing Officer (AO) in the name of company which was not in existence on the date of issuance of notice. The appellant in response to the said notice informed the AO on 10.09.2018 regarding dissolution of Oorja Realtors P. Ltd. A screenshot of reply to the notice is at page 178 of the paper book. The AO in the assessment order dated 11.12.2019 records the fact that the company has applied for striking off name with ROC but, thereafter, makes no application to the ROC for revival of the company and completes the assessment in the name of non-existing entity.
Against the assessment order dated 11.12.2019, the assessee filed an appeal before the CIT(A), inter alia, assailing validity of the assessment. The CIT(A) dismissed the legal ground holding that liability of company do not abate merely on striking off and proceedings for determining tax liability already initiated can continue. The ld. Counsel submits that findings of the CIT(A) are contrary to the decision rendered by the Hon’ble Supreme Court of India in the case of PCIT vs. Maruti Suzuki India Ltd. 107 taxmann.com 375. He thus, prayed for quashing the assessment order.
Per contra, Shri Manoj Kumar, representing the department defended the impugned order and prayed for dismissing appeal of the assessee.
Both sides heard, orders of the lower authorities examined. It is an undisputed fact that name of Oorja Realtors P. Ltd. was struck off from the Register of Companies and the said company was dissolved on 09.07.2018. This fact is evident from Notice of Striking Off and Dissolution issued by Registrar of Company available at page 45 of the paper book. Further, the fact that the appellant had informed the AO regarding striking off name of the company and dissolution of company is evident from the assessment order itself. It is no more res integra that assessment made in the name of non-existing entity is void-ab-initio. [RE: PCIT vs. Maruti Suzuki India Ltd. 107 taxmann.com 375 (supra)].
Thus, in light of undisputed facts and the settled legal position, I hold the assessment order dated 11.12.2019 in the name of non-existing entity as void-ab-initio, hence, the same is quashed.
In the result, appeal of the assessee is allowed.