Pr. Commissioner Of Income Tax-6 vs M/s Neutron Steel Trading Pvt. Ltd. And Anr.

This Appeal is preferred by the Pr. Commissioner of Income Tax-6, New Delhi under Section 252 of the Companies Act, 2013 on being aggrieved

by the action of the Registrar of Companies (“RoCâ€) in striking off the name of M/s Neutron Steel Trading Pvt. Ltd. (“the Companyâ€) from

the Register of Companies.

It is submitted by the Appellant that “the Company†is a Private Limited Company incorporated under the erstwhile Companies Act, 1956 on

09.02.2010 with CIN No. U51909DL2010PTC198855. The Authorised Share capital of the Company is Rs.5,00,000 and the paid-up capital of the

Company is Rs.1,00,000. The registered Office of the Company is at C-156/2 Ground Floor, Moti Nagar, New Delhi-110015 and therefore, the

jurisdiction lies with this Tribunal.

The Appellant in its Appeal has averred that:

“4.1. That the Assessee Company had filed its return of income for Assessment Year 2011-12 declaring a returned income of Rs.

2,69,600. The said return was originally processed under Section 143(1) of the Act and not selected for scrutiny.

4.2. Subsequently, information was received by the Appellant from the DDIT (investigation), Unit-II, Ghn7iabad whereby it was revealed

that one Mr. Bijender Jain, Proprietor of M/ s. Akshay Sales Corporation had admitted to being an accommodation entry provider to other

entities, including the assessee company. It is pertinent to note that the assessee company had entered into a transaction of Rs. 75,78,000/-

with M/ s. Akshay Sales Corporation during the relevant period.â€​

It is stated by the Appellant that it had issued a notice dated 29.03.2018 for the Assessment Year 2011-12 to the Company under Section 148 of the

IT Act for assessment, re-assessement, or re-computation of income escaping assessment of tax.

That the Appellant has annexed the form STK-5, vide Public Notice No.ROC-DEL/248/STK-5/2019/2912, issued by the RoC on 18.06.2018,

whereby a show cause notice was given to the Respondent Company by the RoC.

The Appellant has annexed the copy of the master data of the Respondent Company, wherein the status of the company is appearing as “strike

offâ€. The Company has been struck off from the Register of Companies by RoC vide STK-7 Notice No. ROC-DEL/248(5)/ STK-7/4865 dated

08.08.2018.

The Appellant contends that in order to render the Assessment Orders and Penalty Orders passed by the Assessing Officer valid in the eyes of law

and to enable the IT Department to take appropriate and effective steps for recovery of Income Tax and for any further consequential proceedings,

there is a need of restoration of the Company, viz., M/s Neutron Steel Trading Pvt. Ltd. in the Register of Companies.

During the final hearing on 01.02.2021, Ld. Counsel appearing for the Income Tax Dept. submitted that the Notice was duly published on

27.09.2019 in the local newspapers namely, Financial Express (English) and Jansatta (Hindi) and the Affidavit of Service dated 11.10.2019 has

already been filed stating that the service has been effected on the Respondents. The same is on the records. Ld. Counsel further submitted that

despite publication of the Notice in the local newspapers, none has appeared on behalf of the Respondents. Considering the fact that the notice has

already been served upon the Respondents and its last known Directors and there is no representation on their behalf, they were proceeded ex-parte.

The Respondent No.2 i.e., ROC did not file reply despite opportunities. During the course of hearing on 01.02.2021, AROC submitted that ROC

has no objection to the revival of the Respondent Company.

It is observed that the Income Tax Department is an aggrieved party within the meaning of Section 252(1) read with 252(3) of the Companies Act,

2013 as it has to recover Income Tax/ duties/cess payable by the Respondent Company and great prejudice will be caused to its revenues, if the name

of the Company is not restored back to the Register of the Companies.

Accordingly, in sequel to the above, we are inclined to allow the Appeal. The ROC is directed to restore the name of the Company namely, M/ s.

Neutron Steel Trading Pvt. Ltd. in its Register, as if its name had not been struck off. ROC is also directed to take any other penal action against the

Respondents for default, if any, in accordance with the statutory provisions.

The Appeal is allowed accordingly.

Let the copy of Order be supplied to the parties.