Recovery of Taxes on undisclosed Income - valid ground for restoration

In the matter of the Income Tax Officer (Appellant) V/s Registrar of Companies (Respondent) & Ors.

The name of the Company was struck off from the Register of the Registrar of Companies on account of non- compliance with respect to filing of annual returns and financial statements¹

There were also instances of unreported income which escaped tax assessment within the meaning of Section 147 and 148 of the Income Tax Act by the respondent Company

The Appellant prayed that there was a need to restore the name of the Company in order to avoid any great ` prejudice to the revenue’. Further, without restoration of the name of the Company no proceedings could be initiated or continued against a company that has been stuck off.

The Income Tax Department was hence believed to be the ‘aggrieved party’ ² and was eligible to file an appeal before NCLT for restoration of the name ‘M/s Zamindar Agrotech Private Limited.’

NCLT after considering all of the above facts   directed “Registrar of Companies” to restore the name of the Respondents Company in their Register and also proceed to take such other and further penal action against the respondents in accordance with the statutory provisions”.

¹Sec 248(1) of the Companies Act, 2013 read with Rules 7 & 9 of (Removal of Names of Companies from the Registrar of Companies) Rules 2016.

²As prescribed under section 252(1) of the Companies Act.