Wandel Global Services Pvt. Ltd. (Struck off) vs. ITO, Ward-15(3)(1)

Parties Involved

Facts Summary

The assessee-company, Wandel Global Services Pvt. Ltd., did not file its return for the Assessment Year 2013-14. However, it was revealed that the company had deposited Rs. 3,50,000 in cash in Karnataka Bank. The case was reopened under section 147 of the Income Tax Act, and a notice was issued under section 148. Despite repeated requests, the company did not file the return. Consequently, the Assessing Officer (AO) passed an order under section 144 read with section 147, making additions to the assessee's income. The company's name was struck off by the Registrar of Companies (ROC) on 18.08.2017, and reassessment proceedings were initiated much later under section 148 on 27.03.2019. The assessee appealed before the Commissioner of Income Tax (Appeals) (CIT(A)), which condoned the delay and admitted the appeal. The CIT(A) set aside the assessment order for fresh assessment. The assessee contended that the reassessment proceedings were void ab initio as the company did not exist when the proceedings were initiated.…

Legal Issues

• 1. Whether the reassessment proceedings can be conducted on an assessee whose name has been struck off by the ROC.
• 2. Whether the order of the CIT(A) to restore the matter for fresh assessment is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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