Income Tax Officer, Ward 1(3) vs Registrar Of Companies And Ors.

Hemant Kumar Sarangi, Member (T)

The appeal is filed By Income Tax Officer, Ward 1(3) New Delhi, against the striking off of the name of the M/s Adroit Scaffoldings Private

Limited (“the companyâ€​), from the register of companies.

It is stated that the company is a private limited company incorporated under the erstwhile Companies Act, 1956, on 21.06.2005 having CIN No.

U28111DL2005PTC137815. Authorized capital Rs. 1,00,000/- and paid up capital of Rs. 1,00,000/-. The registered office of the company is stated to

be at C-197, Sector â€" 19, Rohini, New Delhi - 110085. Therefore, the jurisdiction lies with this Bench of the Tribunal.

The applicant submits, that the case of M/s Adroit Scaffoldings Private Limited was identified by the Non-Filer Monitoring System as the company

had not filed its Income Tax Return for the Assessment Year 2011-12 and had received an amount aggregating to Rs. 10,00,000/- (Rupees Ten

Lakhs), the source of which was not disclosed as no Income Tax Return was filed, during the Financial Year 2010-2011 relevant for the A.Y. 2011-

This investment is clearly out of taxable income earned by the Assessee Company during the year under consideration. However, as per the ITD

system and records the Assessee has not filed any return of income for the year under consideration till date.

It has further been stated by the appellant that, from e-filing records of Income Tax Department, the Respondent Company has not filed its ITR for

A.Y. 2011-12. As the Respondent Company did not file its ITR and did not disclose fully and truly all material particulars, the Assessing Officer has

reasons to believe that undisclosed income of Rs. 10,00,000/-(Rupees Ten Lakhs) has escaped assessment for A.Y. 2011-12, thereby rendering the

company liable for consequences under Income Tax Act, 1961.

It is further stated by the applicant, that the notice under section 148 of the Income Tax Act 1961, dated 30.03.2018 for A.Y. 2011-12 was issued to

M/s Adroit Scaffoldings Private Limited and that assessment/reassessment proceedings so initiated were getting barred by limitation on 31.12.2018.

The applicant has submitted that it is not known whether M/s Adroit Scaffoldings Private Limited made any representation to the ROC in

pursuance of the STK-5 but it was found during the course of the assessment/reassessment proceedings that the name of the company was struck off

from the register of companies as per MCA master data of the company. The legality of the striking off the name of the company from the register of

the companies is sought to be assailed on the ground that the assessment/reassessment proceedings were likely to result in an addition of nearly Rs.

10,00,000/- (Rupees Ten Lakh) in the Taxable Income of the company.

The Appellant submitted that Assessment Order has been passed under section 147 read with section 144 of the Income Tax Act, 1961 which has

resulted in creation of demand of Rs. 35,54,425/- copy of assessment order along with demand notice passed under section 156 has been annexed

with the appeal, as the Respondent Company failed to comply with the notice issued under provisions of the Income Tax Act, 1961, therefore penalty

order dated 18.06.2019 under section 271(1)(b) of the Income Tax Act, 1961 has been passed levying a penalty of Rs. 10,000/- copy of the order

along with demand notice has been annexed with the appeal.

The Appellant further submits that Respondent Company has concealed the true particulars of its income therefore a penalty order dated

26.06.2019 under section 271(1)(c) of the Income Tax Act, 1961 has been issued levying a penalty of Rs. 13,02,435/-. Copy of order alongwith the

demand notice has been annexed with the appeal. That further as the Respondent Company failed to furnish its return of income as required under

section 139(1) of the Income Tax Act, 1961 for A. Y. 2011-12, therefore penalty order dated 18.06.2019 under 271F of the Income Tax Act has been

passed levying a penalty of Rs. 5,000/- upon the Respondent Company copy of order along with the demand notice has been 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 assessment 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, because of it being struck off from the register of companies.

The applicant has filed its affidavit of service, it has been stated that envelope addressed to respondent no. 2 has returned unserved with remarks

“on repeated visits addressee not available†and now service has been affected on Respondent no. 2 through email dated 07.01.2019 on the

registered email address as shown in the MCA portal.

Service to Respondent no. 3 and 4 through affixation by Ms. Maneka Gupta, Inspector of Income Tax, on the last known address in presence of

Sh. Gopal Dutt Bhatt, Tax Assistant of Income Tax, and affixture report along with photograph has been annexed with appeal.

The income tax department is an aggrieved party within the meaning of section 252(1) as it has to recover taxes payable by respondent company

and great prejudice will be caused to Revenue if the name of the respondent company is not restored back. In the 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 Respondent 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 off accordingly.

Let the copy of order be supplied to parties.