Income Tax Officer vs Registrar Of Companies And Ors.

This appeal is filed by Income Tax Authority, through its Income Tax Officer, Mrs. Uma Saigal, under Section 252(1) of the Companies Act, 2013

(for brevity ‘the Act’) against the order of striking off the name of the company M/s Reliant Constructions Private Limited (for brevity ‘the

Company’) passed by the respondent 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 30.06.2017 vide notification no. ROC-DEL/248(5)/STK-7/2879 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 11.12.2006 having CIN No. U45200DL2006PTC156421.

The company is having its registered office at 3483, 2nd Floor, Phatak Daroga Bazar, Sirkiwal, Hauz Qazi, Delhi-110006.

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 from

years 2010-11, 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. Though Respondent No.2 to Respondent No. 4 being Ex- directors

have appeared on 04.10.2018 where they sought time to file their reply but they have not filed any reply till date. Therefore, Respondent No. 2 to

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 Reliant Constructions Pvt. Ltd. in order to take forward proceedings initiated

against the company. As per averments, on the basis of ‘Non-filers Monitoring System’ information, respondent company had received huge

payment/credits amounting to Rs. 8,59,282/- from Larsen & Toubro Limited and Gammon India Ltd. during the A.Y. 2011-12, on which TDS of Rs.

998/- and Rs. 17,185/-respectively was deducted under Section 194C of the Income Tax Act,1961. The respondent company was engaged in business

transactions having received at least Rs. 9,09,182/- during A.Y. 2011-12. Further the respondent company had not filed its Income Tax return for

A.Y. 2011-12, therefore the source of the cash received remains unverifiable.

The appellant has further submitted that it appears that there is tax evasion which has 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. Notice dated 27.03.2018 under section

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

affixation.

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

respondents at its registered address and also Form of recording the reasons for initiating the proceedings under section 148 along with the approval of

the Principal Commissioner of Income Tax dated 16.03.2018 is annexed with the appeal.

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) 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.