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

The current Appeal has been filed by the Asstt. Commissioner of Income Tax, New Delhi under Section 252(1) read with Section 252(3) of the

Companies Act, 2013 on being aggrieved by the action of the Registrar of Companies (""RoC"") in striking off the name of M/s Zeus Impex Pvt. Ltd.

(""the Company"") from the Register of Companies.

It is stated by the Appellant that ""the Company"" is a Private Limited Company incorporated under the erstwhile Companies Act, 1956 on

12.12.2008 with CIN No. U51109DL2008PTC185778. The Authorised Share capital of the Company is Rs.10,00,000. The paidup Share capital Rs.

3,92,000. The registered Office of the Company is at Property No. 194, Shop No. 2, Pocket-26, Rohini, Delhi-110085. Therefore, the jurisdiction lies

with this Tribunal.

The Appellant in its Appeal has averred that:

5.2 Search and seizure operation was carried out on Sh. Anand Kumar Jain, Sh. Naresh Kumar Jain & Others on 17.12.2015 engaged in

the business of providing accommodation entries. During the course of search, large numbers of incriminating documents found and seized.

While examining the seized documents the assessing officer of searched person came across with certain documents which pertained to M/ s.

Zeus Impex Pvt. Ltd. and after recording his satisfaction to this effect he has forwarded the satisfaction note and the relevant documents

relating to M/ s. Zeus Impex Pvt. Ltd. to the appellant being the AO of person other than the searched person (in both these cases the AO is

the same.)

5.3 Upon examining these seized documents and on analysis of the bank statements and the electronic data seized during the course of

search it is found that the respondent company has undertaking certain financial transactions with the shell companies of Jain Brothers

who are the entry operators.

5.4 ""Jain Folder"" was found to be maintained in Tally software. The transactions carried out of accommodation entries through banking

channels were posted through payment and Receipt Vouchers which were visible in the output of these ledgers. Against most of these

banking entries, corresponding cash entries have been found posted through Journal Vouchers. The narration in most of the Vouchers is

Cash"" written against the transactions clearly specifying in this ledger payments made in cash, which exposes the whole arrangement put

in place by the Jain Brothers to provide accommodation entries to various beneficiaries through cheques/ DD/ RTGS/ NEF7' in lieu of cash,

through various paper and dummy companies floated and controlled by them. Thus the Jain Brothers had created a folder in the Tally

Software, with the name of the company as ""Jain"", for recording the details of the accommodation entries being provided by them to various

persons including M/ s Zeus Impex Pvt. Ltd

It is submitted by the Appellant that it had issued a notice dated 28.03.2018 under section 153A read with 1530 of the IT Act to the Company

asking it to furnish the returns of income for the Assessment Year from 2012-13 to 2017-18. Further, notices dated 22.10.2018 under section 142(1) of

the IT Act had been issued to the Respondent company for the Assessment Years from 2012-13 to 2017-18.

It is stated by the Appellant that during the Assessment Year proceedings from A.Y 2012-13 to 2017-18, the Appellant came to know from the

MCA website and Master data of the Respondent Company that name of the Company has been struck off from the Register of Companies by the

RoC.

The Appellant submits that in order to frame the Assessment order and take appropriate and effective steps for recovery of taxes and initiate

proceedings, there is a need of restoration of the Company, viz., M/s Zeus Impex Pvt. Ltd. to the Register of Companies, as if it was never struck off.

That the Appellant has filed its Affidavit of Service dated 11.02.2019, wherein it is stated that the service of Notice on the Respondent No.2 & 3

was effected through speed post dated 09.02.2019 and the Respondent No.4 through affixation. Considering the fact that the notices were served

upon the Respondents and none was present, they were proceeded ex-parte vide order dated 24.04.2019 of this Tribunal.

The Respondent No.1 i.e., ROC did not file reply despite opportunities. During the course of hearing on 01.02.2021, AROC submitted that ROC

has no objection to the revival of the Respondent Company.

The Income Tax Department is an aggrieved party within the meaning of Section 252(1) read with 252(3) of the Companies Act, 2013 as it has to

recover taxes payable by the Respondent Company and great prejudice will be caused to its revenues, if the name of the Company is not restored

back to the Register of the Companies.

Accordingly, in sequel to the above, we consider it to be just and equitable to allow restoration of the Company and allow the Appeal. The

Registrar of Companies, is directed to restore the name of the Company namely, M/s Zeus Impex Pvt. Ltd. in its Register, as if the name of the

Company had not been struck off in accordance with Section 248(1) of the Companies Act, 2013. ROC is also directed to take any other penal action

against the other Respondents for default, if any, in accordance with the Statutory provisions.

The Appeal is allowed accordingly.

Let the copy of Order be supplied to the parties.