Income Tax Officer, Ward 7(1) vs Registrar Of Companies And Ors.

Sumita Purkayastha, Member (T)

This petition has been filed by Income Tax Authority invoking the provisions of Section 252 of the Companies Act, 2013 for restoration of the name of the Respondent No. 2 company, DEXL Education Services India Pvt. Ltd. 17/701, Sarasaswati Kunj Apartments, (East End Apartments), Mayur Vihar Phase-I, Delhi-110096, in the Register of Companies maintained by the RoC, respondent No. 1.

Service was duly effected on the respondent company and its Directors. Other than the RoC, none appeared on behalf of the respondent nos. 2 to 4 to oppose the prayer made by the petitioner. Respondent No. l the RoC specifically submits that they have no objections to the prayer of the petitioner being granted by this bench.

Vide Proceedings initiated by the Ministry of Corporate Affairs, through the office of the RoC, names of several companies were struck off for want of filing Statutory Returns.

Respondent No. 2 company, which had not filed any Return or Financial Statement after the Assessment year 2011-2012, was duly struck off from the Register of Companies vide Notice No. ROC/DEL/248(5)/STK-7/4865 dated 08.08.2018.

Invoking the provision of section 252 of the Act, the Income Tax Dept. prayed for its restoration in order to carry out proceedings initiated against them. As per averments, information available on website of MCA, respondent company was incorporated on 29.05.2008 under Companies Act, 1956 under the Registrar of Companies, Delhi having registered address at 17/701, Sarasaswati Kunj Apartments (East end apartments) Mayur Vihar Phase-I (Extn.), Delhi-110096. From the information with the Revenue through NMS/ITD software, information from AIR/CIB statements and ITS and 26AS, it is observed that during the FY 2010-2011 relevant to AY 2011-2012, the respondent company had deposited cash amounting to Rs. 5,49,000/- in its bank account. The respondent company had not filed its IT Return for the AY 2011-2012. As per the provisions of Section 139 of the IT Act, every company is mandatorily required to file its return of income within prescribed time in the prescribed manner. Thus, the company has violated the provisions of the Income Tax Act by not filing the ITR. As the respondent did not file its ITR and did not disclosed fully and truly all material facts necessary for assessment, the appellant has reason to believe that an estimated amount of at least Rs. 5,49,000/- has escaped assessment within the meaning of Section 147/148 of the IT Act and has not been brought under tax for the A.Y. 2011-2012, thereby rendering the company liable for consequences under IT Act, 1961 and entitling the revenue to initiate proceedings against the company.

The respondent No. 2 company did not disclose fully and truly all material facts necessary for assessment thus escaped assessment within the meaning of section 147/148 of the Income Tax Act, 1961.

Ld. Standing Counsel for the IT dept. submits that there are recovery & penalty proceedings pending under Section 271(1)(b), 271(1)(c) & 271F of Income Tax Act. Action in accordance with law is required to be initiated against the company. Notice dated 18.06.209, 27.06.2019 and 18.06.2019 under section 156 of the IT Act, 1961, was issued to the respondent at its registered address/email id as well as vide affixation to which there has been no response.

Ld. Counsel for the Income Tax Submits that the aforesaid facts necessitate restoration of the name of the Respondent Company in the Register of Companies to proceed further in accordance with law. In view of the grounds raised by the applicant, being an aggrieved person, the prayer can be entertained u/s 252(3) of the Code.

The petition is therefore allowed. The ROC 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.

We however make it clear that this Bench has only directed restoration of the name of the appellant company in the Register of Companies maintained by the ROC on the basis of averments made in the petition and in no way endorse or have adjudicated about their entitlement to recover which shall be adjudicated by the department subject to the laws of limitation governing such recoveries. Charges involved in seeking restoration of the company's name with the office of the RoC shall be borne by the applicant. Petition is disposed off in terms of the above. Compliance be made with the RoC within 30 days.