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Judgment
20.08.2026:
[Per: Justice N. Seshasayee, Member (Judicial)]
This appeal is preferred challenging an order of the learned NCLT in CP No.1405/2019 which came to be filed under Section 252 (3) of the Companies Act, challenging the proceedings of the 1st respondent, the RoC, dated 09.08.2018.
Heard both sides. The learned counsel for the appellant submitted that the appellant company was registered on 01.04.2004 and it is into IT enabled services, that it had filed its returns promptly to the 1st respondent up to 2012 -2013. Thereafter these returns were not filed rather inadvertently. It is in this backdrop on 04.06.2018, the 1st respondent issued a show cause notice as to why the company’s name should not be struck off the register. Eventually, on 09.08.2018, it was so struck off.
The appellant would now move the NCLT under Section 252 and the learned Tribunal dismissed his appeal, essentially on the ground that the appellant has not produced necessary documents to establish that it is operational. This order is now under challenge.
The learned counsel for the appellant would add that the appellant has produced financial statement of the company for the years 2014 - 2015 to 2017 -2018. These documents would show that the appellant indeed had shown revenue from its operation at around Rs.25 - 26 lakhs every year. He added that he has also produced income tax returns for the assessment year 2018 - 2019, which corresponds to the last financial statement the appellant has produced for the previous year 2017 - 2018. The learned counsel concluded that these documents were not adequately appreciated by the learned Tribunal whereas they show that the appellant indeed has been doing business and it is still operational.
The learned counsel for the 2nd respondent, the Income Tax Department, submitted that the appellant has also filed the income tax returns for the assessment year 2018 - 2019 as well. The income tax returns which has been filed show that the though the revenue from operation runs to lakhs, the taxable income is not much. But then it is an aspect which should concern the Income Tax Department.
After carefully appraising ourselves of the materials available before us we consider that the impugned order passed by the learned NCLT is required to be set aside. The company appeal is allowed.