I-T dept to seek restoration of some ‘struck Off’ companies

NEW DELHI: The income tax department will seek restoration of deregistered companies that have pending income tax liabilities. The Central Board of Direct Taxes has asked assessing officers to request the restoration of companies “struck off” so that the government can recover tax dues.

“Board has decided that request/appeal for restoration of name of the struck off company with retrospective date from the date of being ‘struck off” shall be made by the income tax department,” it said in a letter.

The ministry of corporate affairs deregistered 2.24 lakh companies under section 248 (5) of the Companies Act for not complying with regulatory filings.


The department directed its officials to emphasise that restoration is being sought to protect government revenue and in some cases could become time barred. It told the officials to make urgent restoration requests to the appropriate registrar of companies and even sent apro forma form.

“Though section 248 is quite clear that the right of the revenue department to recover tax arrears is not impacted in any manner by such ‘strike off ’ and the companies shall remain liable to pay their tax arrears, this non-existence raised questions on tenability of the income-tax proceedings against these companies,” said Rakesh Nangia, managing partner at Nangia & Co.

The CBDT has also asked tax officials to consider on a case-to-case basis filing an appeal with the National Company Law Tribunal for revival of companies with pending income tax issues.

The CBDT laid out cases where revival requests should be considered.

These include cases where proceedings were already under progress, where proceedings were being contemplated, where department appeals were pending, where penalty proceedings already initiated were pending or where prosecution proceedings had been initiated.