ITAT Appeal filed by or against struck off Assessee Company is maintainable

The Income Tax Appellate Tribunal (ITAT) has adjudged that though the Assessee company has been struck off under Section 248 of the Companies Act 2013, in view of sub-section (6) and (7) of Section 248 and Section 250 of companies Act 2013, the Certificate of Incorporation issued to the Assessee company cannot be treated as canceled for the purpose of realizing the amount due to the company and for payment or discharge of the liability or obligations of the company. Thus the tribunal opined that the Appeal filed by the struck-off Assessee Company or Appeal filed by the Revenue against the struck-off Company are maintainable.

The Assessee Dwarka Portfolio Pvt. Ltd. has filed an appeal with the ITAT challenging the order dated 24/03/2017 passed by CIT(A), wherein addition of Rs. 18,00,00,000/- made u/s 68 of Income Tax Act by the A.O has been confirmed by the CIT(A), New Delhi for Assessment Year 2014-15.

When the appeal was taken up for hearing, the Ld. DR submitted that, 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.

Per contra, the Ld. Counsel for the assessee submitted that, the Appeal cannot be dismissed as ‘not maintainable’ merely on the ground of striking off the Assessee Company by the ROC and insisted to hear and decide the present Appeal on merit.

The Bench of Mr. Yogesh Kumar and Mr. B.R.R. Kumar decided the question of law and held that the Appeal is maintainable even after striking off of the assessee company.