Assitant Commissioner Of Income Tax vs Registrar Of Companies And Ors.

This petition has been filed by Income Tax Authority invoking the provisions of Section 252 of the Companies Act, 2013 for restoration of the name

of the Respondent No. 2 company, viz M/S Shivij Garments Pvt. Ltd in the Register of Companies maintained by the RoC, respondent no. 1.

Service was duly effected on the respondent company and its Directors. Other than the RoC, none appeared on behalf of the respondent no. 2, 3 &

4 to oppose the prayer made by the petitioner, hence were proceeded ex-parte. Respondent No. 1 the RoC specifically submits that they have no

objections to the prayer of the petitioner being granted by this bench.

Vide Proceedings initiated by the Ministry of Corporate Affairs, through the office of the RoC, names of several companies were struck off for

want of filing Statutory Returns.

Respondent No.2 Company, which had also not filed any Return or Financial Statement, was duly struck off from the Register of Companies.

Invoking the provision of section 252 of the Act, the Income Tax Dept. prays for its restoration in order to carry out proceedings initiated against

them. As per averments, on the basis of search and seizure operations carried out on Sh. Anand Kumar Jain, Sh Naresh Kumar Jain & Others (herein

referred as ""Jain Brothers"") on 17.12.2015 engaged in the business of providing accommodation entries through its shell companies, a large number of

incriminating documents were found and seized. While examining the seized documents the assessing officer of Jain Brothers came across certain

documents which pertained to the respondent company and after recording to his satisfaction to this effect he had forwarded the satisfaction note and

relevant documents to the petitioner being the Assessing Officer with respect to the respondent company.

Upon examination of the seized documents and on analysis of the bank statements and the electronic data seized from the Jain Brothers, it was

found that a folder named ""Jain"" was maintained in the Tally software which provides all information with respect to transactions carried out of the

accommodation entries through banking channels along with details of the accommodation entries being provided by them to various companies,

including the respondent company which has been undertaking certain financial transactions with the shell companies of Jain Brothers. Notice dated

28.03.2018 under section 153A read with section 153 C of the I.T. Act had been issued to the respondent company, to furnish the return income for

A.Y. 2012-13 to 2017-18. Further Notices dated 22.10.2018 & 26.11.2018 under section 142(1) of the I.T. Act, 1961 have been issues to the

respondent company in connection with assessment for A.Y. 2012-13 to 2017-18.

Ld. Standing Counsel for the IT dept. submits that the Assessment order including the order in respect of penalty imposed has been finalized.

Action in accordance with law is required to be initiated against the company.

Ld. Counsel for the Income Tax Submits that the aforesaid facts necessitate restoration of the name of the Respondent Company in the Register of

Companies to proceed further in accordance with law. In view of the grounds raised by the applicant, being an aggrieved person, the prayer can be

entertained u/s 252(3) of the Code.

We however make it clear that this Bench has only directed restoration of the name of the appellant company in the Register of Companies

maintained by the ROC on the basis of averment made in the petition and in no way endorse or have adjudicated about their entitlement to recover

which shall be adjudicated by the department subject to the laws of limitation governing such recoveries. Charges involved in seeking restoration of the

company's name with the office of the RoC shall be borne by the applicant. Petition is disposed off in terms of the above. Compliance be made with

the RoC within 30 clays.

The petition is therefore allowed. The RoC is therefore directed to restore the name of the Respondent Company in their Register and also

proceed to take such other and further penal action against the respondents in accordance with the statutory provisions.