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C. PRAVEEN KUMAR, B. SYAMSUNDER
Visakha Gas Agency, Rep. by its Managing Partner, Sri. Imadabathuni Venkata Subba Rao – Appellant
Versus
Income Tax Officer Ward 2(1), Visakhapatnam – Respondent
ORDER :
C. Praveen Kumar, J.
The present writ petition came to be filed, by one Visakha Gas Agency represented by its Managing Partner/I. Venkata Subba Rao, seeking issuance of writ of Mandamus to declare (a) the Show Cause Notice issued by the first respondent under Section 148-A(b) of Income Tax Act, 1961 [for short, “IT Act”] dated 21.03.2022, (b) the Order passed by the first respondent under Section 148A(d) of I.T.Act dated 01.04.2022 and (c) the Notice issued by the first respondent under Section 148 of I.T. Act dated 04.04.2022 for the Assessment Year 2015-16, as illegal, arbitrary and bad in law.
2. The averments made in the affidavit filed, in support of the writ petition, would show that though the name of the Assessee firm, mentioned in the notice and order, and that of the petitioner herein being same, but the PAN Number, address and constitution of the Assessee firm are different from those of the petitioner herein, and as such, the impugned notices issued, in spite of bringing to the notice of the authorities that the petitioner firm was dissolved in the year 2001 itself upon the death of one of its partners, is bad in law.
(a) Initially, a partnership firm in the name of
Notices issued under the Income Tax Act to a non-existent entity are void ab initio, and proper jurisdiction must be established based on the current legal status of the taxpayer.
The impugned order and notice under Section 148 and 148A(d) of the Income Tax Act, issued against a non-extant entity, cannot be complied with, and were therefore set aside.
Notices issued in the name of a dissolved partnership firm are invalid, reaffirming the necessity for proper jurisdiction in tax assessments.
The court emphasized that the Assessing Authority must follow the prescribed procedure under Section 148A of the Income Tax Act, 1961 and consider the material on record before issuing an order or no....
A notice under Section 148 of the Income Tax Act is invalid if issued against a non-existent entity, confirming the need for valid recognition of a company's status post-amalgamation.
Reassessment proceedings initiated against a business entity that has ceased to exist due to dissolution are void ab initio and legally unenforceable, as jurisdictional notices cannot be issued again....
The court emphasized the importance of the Assessing Officer considering the explanation given by the petitioner and the need to establish the taxable income in the hands of the legal entities.
The legal service of notice under the Income Tax Act, 1961 is a jurisdictional requirement and must be mandatorily complied with. Failure to serve notice on the correct registered email address of th....
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