Order 148A(d) & Notice u/s 148 issued on 31.3.2023 in the name and on the PAN of the dissolved Firm set aside by the Delhi High Court

[Case: Rajinder Nath Kapoor Vs. ITO]

Issue:
Reopening of assessment u/s 147 post 31.3.2021 under new set of substituted / amended sections 147, 148, 148A, 149 & 151( hereinafter referred to as new regime of reassessment).

Facts of the case:
(1) Assessee was a partnership firm styled M/s. Kapoor Electric Mart constitutes on 22.4.1982 having PAN : AAAFK4540P.

(2) The firm was engaged in the business of trading by making import from China.

(3) From AY 1983-84 to 2004-05 the assessee filed ITR in the status of Firm on above PAN.

(4) W.e.f. 1.4.2004, the firm was dissolved and the running business of the firm was taken over by one of the partners and from 1.4.2004 carried over by his as sole proprietor under the same name but in his own PAN : AASPK4955A.

(5) Three SCNs were issued u/s 148A(b) on 22.2.2023, 1.3.2023 and 5.3.2023 in the name and on the PAN of the dissolved Firm.

(6) Action was taken in the name and PAN of the Firm for the reason that in Bill of Entry of import, PAN of the Firm was mentioned, whereas factually the import was made by the individual who had taken over and continued the business after dissolution.

(7) Imports were duly accounted for in the books of the individual
and declared in the return.

(8) Accordingly Order 148A(d) and Notice u/s 148 were issued on 31.3.2023 in the name and on the PAN of the dissolved Firm.

Held
Order passed u/s 148A(d) and notice issued u/s 148 set aside as these were passed and issued against non-extant entity, i.e. the dissolved Firm, and the same cannot be complied with as such.

The copy of the order is as under:

 

1688297345993 (1)