Income Tax Officer, Ward 27(3) vs Registrar Of Companies And Ors.

Hemant Kumar Sarangi, Member (T)

The appeal is filed by Income Tax Officer, Ward 27(3) New Delhi, against the striking off of the name of the M/s Wizard Developers Private

Limited (""the company""), from the register of companies.

It is stated that the company is a private limited company incorporated under the erstwhile Companies Act, 1956, on 23.03.2007 having CIN No.

U70102DL2007VIV161075 with authorized capital Rs. 12,00,000/- and paid up capital of Rs. 12,00,000/-. The registered office of the company is

stated to be at 1403, Katra Jhajjar Wala, Chandni Chowk, Delhi 110006. Therefore, the jurisdiction lies with this Bench of the Tribunal.

The applicant submits, that M/s Wizard Developers Private Limited has filed its return of loss for the A.Y. 2011-12 at an income of HRs. 2,80,092/-

. Information in the case of the respondent company was received from the Investigation Wing regarding huge credits amounting to Rs. 26.14 Crores

during the F.Y. 2010-11 relevant to A.Y. 2011-12. The deposits were made with YES Bank Ltd. This investment is clearly out of taxable income

earned by the Assessee Company during the year under consideration. Examination of the information for bank deposit, along with the financials of

the respondent company, reveals that the respondent company has declared a meagre income of Rs. 2,80,092/-. The business receipts have been

declared at Rs. 5,42,25,125/- along with the commission of Rs, 46,08,941/- and interest of Rs. 9,66,329/- totaling to Rs. 5,98,00,395/-. Closing stock /

inventories have been shown ""NIL"". So, there is a huge difference of Rs. 20.16 crores (26.14 crores â€" 5.98 crores) between the receipts as per the

Bank A/c vis-d-vis the receipts declared by the respondent.

It has further been stated by the appellant that, from e-filing records of Income Tax Department, the respondent company has filed its ITR for A.

Y. 2011-12, disclosing turnover with loss amounting tceRs. 2,80,092/- which does not explain the credit amount of Rs. 20.14 crores in its bank

account. Therefore, the Assessing officer has reason to believe that an amount of at least Rs. 20.14 crores chargeable to tax 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 notice under section 148 of the Income Tax Act 1961, dated 28.03.2018 for A.Y. 2011-12 was issued to

M/s M/s Wizard Developers Private Limited and that assessment / reassessment proceedings so initiated were getting barred by limitation on

31.12.2018.

It is submitted that vide notice dated 27.04.2017 being Public Notice no. ROC-DEL/248/STK-5/721 in Form STK-5, the Registrar of Companies

(ROC) had sought explanation from the company as to why its name should not be struck off from the register of companies, on account of not

carrying on any business or operation for a period of two immediately preceding financial years and having not made any application within such

period for obtaining the status of dormant company under section 455 of the Companies Act, 2013.

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

pursuance of the STK-5. 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 vide notice dated 30.06.2017 being Public Notice no. ROC-DEL/248(5)/STK-7/2879 in Form STK-7 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 was to result in an addition of nearly Rs. 20.14 crores in the Taxable Income of the

company.

The applicant has filed its affidavit of service, it has been stated that the publication was done in English newspaper ""Business Standard"", Delhi

edition dated 03.07.2019 and the name of the Respondent Company and its Directors is appearing at Serial No. 8 on Page No, 7. The publication was

also done in Hindi newspaper ""Jansatta"", Delhi edition 05.07.2019 and the name of the Respondent Company and its Directors is appearing at Serial

No. 8 on Page No. 3. Newspaper in original has been annexed alongwith the affidavit.

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 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 of accordingly.

Let the copy of order be supplied to parties.