ITTA Delhi has recently held that the Income Tax Appeal may be filed even by the struck off company too.

The case details is as under:

Dwarka Portfolio Pvt. Ltd (I.T.A. No. 2563/DEL/2017)

Let us have a short overview of the case:

Facts:

1. The assessee Company has been struck off vide Notification No ROC/DELHI/248(5)/STK-7/10587 dated 08/03/2019 of Registrar of Companies NCT of Delhi and Haryana.

2. The AO had made an addition of Rs. 18,00,00,000, u/s 68 of Income Tax Act, as unexplained cash credit.

3. The revenue took the stand that, in view of the aforementioned notification, the appeal filed by the assessee has become in-fructuous and prayed for dismissal of the appeal as not maintainable.

ITAT Delhi held as below:

1. The Certificate of Incorporation issued to the Assessee company cannot be treated as cancelled for the purpose of realizing the amount due to the company and for payment or discharge of the liability or obligations of the company.

2. As per Section 179, the revenue department can recover tax from the Directors of the Company in case of gross neglect or breach of duty on the part of the Directors and Section 223 (6) of the Income Tax Act can be invoked by the revenue department for the recovery of any sort of tax due from the struck-off Company.

3. So if the revenue department will directly recover the tax due from the Directors of the Company, without any interference of the Court/Tribunal, then it would deprive the Directors of their rights that are protected under the law.

4. So the appeal filed by the assessee is maintainable.