IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI, JM Assessment Year: 2010-11 Chandan Raltors P. Ltd. Vs. ITO, 14(1)(1), 102, Parekh Building N.G. Mumbai.

Acharya Marg, Chembur, Mumbai, Maharashtra.

PAN:[AACCC1129M]

(Appellant) (Respondent)

Appellant by Sh. Kirit Sheth, AR Respondent by Ms. Pradnya Gholap, Sr. D.R.

Date of Hearing 03.12.2024 Date of Pronouncement 18.02.2025 ORDER Per: Smt. Beena Pillai, J.M.:

Present appeal arises out of order dated 03.03.2021 passed by NFAC, Delhi, for assessment year 2010-11 on the following revised grounds of appeal:

“1. The learned CIT(A) has erred in confirming the validity of notice issued u/s. 148 and consequently the validity of the order passed u/s. 143 (3) r.w.s. 147.

Your appellant respectfully submits that the notice u/s. 148 and consequently the order u/s. 143 (3) r.w.s. 147 are invalid and deserves to be annulled

2. The learned CIT(A) has erred in upholding the validity of the order u/s. 143 (3) r.w.s. 147 though it was passed in the name of a company which was struck off and dissolved by the Registrar of Companies and hence was no longer in existence when the order u/s. 143 (3) r.w.s. 147 was passed Your appellant respectfully submits that the order u/s. 143 (3) r.w.s. 147 passed in the name of a non - existent company is bad in law and deserves to be annulled

3. The learned CIT (A) has erred in confirming the addition of Rs. 48,88,000 even though no addition is made on account of alleged escaped income for which proceedings u/s 147 was initiated Your appellant respectfully submits that some other addition cannot be made in the order u/s. 143 (3) r.w.s. 147 if no addition is made on account of alleged escaped income for which proceedings u/s 147 was initiated The learned CIT (A) has erred in confirming the addition u/s. 69A to the extent of of Rs. 48,88,000 Your appellant respectfully submits that, on facts and in law, the addition of Rs. 48,88,000 is unjustified and should therefore be deleted.”

2. Brief facts of the case are as under:

The assessee is a company and it had not filed any return of income for the year under consideration. When the information received by the Ld.AO that assessee had entered into a transaction to purchase an immoveable property during the period relevant to the assessment year under consideration. Accordingly notice u/s 148 was issued on 31.03.2017 by recording reasons as under:

“REASONS FOR RE-OPENING THE ASSESSMENT U/S.147 OF THE I.T. ACT, 1961 The assessee has not filed return of income for the A.Y.2010-11 as per NMS software. On perusal of the AIR_ information generated from the ITD Application it is seen that the assessee has not offered income amounting to Rs.3,53,33,500/^earned during the financial year relevant to A.Y.2010-11.

Therefore, I have reason to believe that income to the tune of atleast 3,5 3,33,500/- has escaped assessment for A.Y.2010.11, Hence, it is a fit case for initiation of proceedings u/s. 147 of the Income Tax Act, 1961 by issuing notice u/s. 148 of the Income Tax Act, 1961.”

2.1 In response to the notice assessee did not file any return of income nor filed any correspondence as a result of which various reminder letters were issued to the assessee. Since, none appeared even after issuing many reminders, notice u/s 133(6) was issued to the Sub Registrar calling for copy of the registered agreement of the transaction recorded in AIR 133(6) notice was also issued to the Syndicate Bank Chembur Branch calling for KYC and account details through which the payments were made for purchase of such immoveable property. Even the Registrar of the company were called upon to furnish the details of the annual return filed by the assessee.

2.2 From the information received, the Sub Registrar of the assessee through its director Mr. Subhash C. Jan and Mr. Jabbar Sheikh purchased two properties:

i. Plot of land admeasuring 762.9 Sq.m. situated at Chembur village Sai Nagar Road, St. Antony Road Chembur, Mumbai 400078 and