Legal provisions and remedies available to the Assessing Officer ...

Struck-off company: AO's options for tax recovery from former directors, not challenging assessment merits.

Case Laws     Income Tax

September 13, 2024

Legal provisions and remedies available to the Assessing Officer (AO) when dealing with a company whose name has been struck off from the register of companies. Key points: Sections 159-163, 166-167 of the Income Tax Act, dealing with legal representatives, representative assessees, agents, and remedies against property, are not applicable in this case. Section 170, concerning succession of business, is also irrelevant. Section 176(1) allows assessment of income for the period until discontinuance of business. Section 178, regarding companies in liquidation, does not apply as this was a voluntary dissolution. u/s 179, the former director can be proceeded against for recovery of tax payable by the erstwhile company but cannot challenge the merits of the assessment order through appeals u/ss 246(1) and 253, as only the 'assessee' can do so. The maintainability of an appeal filed on behalf of a company whose name is struck off is questionable. However, the certificate of incorporation cannot be treated as cancelled for realizing dues and discharging liabilities, as per the Delhi ITAT ruling in Dwarka Portfolio (P) Ltd.

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