Income Tax Officer vs Registrar Of Companies And Ors.

This appeal is filed by Income Tax Authority, through its Income Tax Officer, Mr. JR Tanwar , under Section 252(1) read with Section 252 (3) of

the Companies Act, 2013 (for brevity ‘the Act’) against the order of striking off the name of the company M/s Eagle Protection Services Pvt.

Ltd. (for brevity ‘the Company’) passed by the respondent no.1 Registrar of Companies, under section 248 (1) of the Act read with Rule 7 of

Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 published on 08.08.2018 vide notification no. ROC-

DEL/248(5)/STK-7/4865 by Registrar of Companies, the respondent herein.

The company is incorporated as a Private Limited Company under the provision of Companies Act, 1956 with the Registrar of Companies, NCT of

Delhi and Haryana on 29.08.2008 having CIN No. U74920DL2008PTC182626.

The company is having registered office at L-13, A-1, Near Khalilullah Masjid, Batla House, Jamia Nagar, New Delhi-110025.

Authorized share capital of the Company is Rs.1,00,000/-and issued, subscribed and paid up share capital of the Company is Rs.1,00,000/-.

As per the notice of non- compliance of provisions of the Companies Act, 2013 in respect to filing of annual returns and financial statements for the

financial years 2014-15 to 2016-17, the name of the company was struck off in terms of provision of Section 248(1) of the Companies Act, 2013 read

with Rule 7 and Rule 9 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

The Appellant has submitted that service was duly affected on the respondents. Other than the Registrar of companies, none appeared on behalf of

the other respondents. While Respondent No. 2, Respondent No. 3 and Respondent No. 4 were proceeded ex-parte, and Registrar of companies

submits that they have no objections to the prayer of the applicant being granted by this bench.

The Appellant prays for the restoration of company namely M/s Eagle Protection Services Pvt. Ltd. in order to take forward proceedings initiated

against the company. As per averments, on the basis of the Non-Filer Management System information received by the Income Tax department, the

respondent company had received Contractual receipts (liable for TDS under Section 194C of the I.T. Act), Commission or Brokerage receipts (liable

for TDS under Section 194C of the I.T. Act) and Fees for Professional/ Technical services (liable for TDS under Section 194C of the I.T. Act) all

aggregating to Rs. 9,92,841/- during the financial year 2010-11 relevant for A.Y. 2011-12, from M/s. Pandit Construction Services, M/s Punjab

National bank, IL&FS Environmental Infrastructure & Services Ltd. who have effected TDS on the said payments and further the respondent

company has not filed its return of income for the assessment year 2011-12.

The appellant has further submitted that it appeared that there was tax evasion which had escaped assessment within the meaning of Section 147 &

148 of the Income Tax Act and action in accordance with law is required to be initiated against the company, therefore Notice dated 23.03.2018 under

section 148 of the Income Tax Act, 1961 was issued to the respondent at its registered address and email id as well as through affixation, to which

there is no response, from any of the Respondents being the company and its ex-directors.

The appellant has further submitted that Reasons for issue of notice under section 148 of the Income Tax Act, 1961 were served on the respondent

at its registered address and also Form for recording the reasons for initiating the proceedings under section 148 is annexed with the appeal.

The Ld. Counsel for the Income Tax submits that assessment order was passed on 07.12.2018 under section 144/147 of the Income Tax Act,

1961.

It is further submitted that Notice of Demand dated 07.12.2018, under Section 156 of the Income Tax Act, 1961, was also served on the

respondents asking them to pay the penalty under section 271(1)(b), 271(1)(c), and 271 F amounting to Rs. 1,63,750/- within 30 days of the service of

this notice but nothing is paid till date. The said penalty proceedings are initiated in furtherance of assessment order dated 07.12.2018.

The Ld. Counsel for the Income Tax submits that in order to recover the taxes on the undisclosed income of the respondent company and to

charge and recover the revenue from the transactions from the respondent company during the year 2011-12, it necessitates restoration of the

Respondent Company in the Register of Companies to proceed further in accordance with law, since as on date the proceedings cannot continue

against the company, for it being struck off.

The income tax department is an aggrieved party within the meaning of section 252(1) read with Section 252(3) of the Companies Act, 2013, as it

has to recover taxes payables by respondent company and great prejudice will be caused to revenue if the name of the respondent company is not

restored back.

In above circumstances, this appeal is allowed. The Registrar of companies 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. The

name of the Appellant Company shall then, as a consequence, stand restored to the Register of the Registrar of Companies, as if the name of the

company had not been struck off in accordance with Section 248(1) of the Companies Act, 2013.

The appeal is disposed of accordingly.

Let the copy of the order be served to the parties.