The petitioner/assessee was the Director of the Speed & Safe Freight Systems India Private Limited and the said Company was struck-off from the official register of companies with effect from 29-10-2019. He received a notice under section 148 on 31-3-2021 for reopening of assessment for the relevant assessment year 2015-16. On writ petition, the assessee submitted that the assessment order could not be reopened against the company, which was already struck-off. It was only after the revival of the Company, the Authority would get power to reopen the assessment and pass further orders. For this the respondent/revenue would have to file an application for revival under section 252 of the Companies Act, read with rules 11 and 87 of the NCLT Rules, within the period mentioned therein. However, the impugned order was passed by the revenue without application of mind. Hence, the said impugned order was liable to be quashed.

Where a company is struck off, the reassessment proceedings against it can only be initiated by its revival. The department cannot initiate the reassessment proceedings against the Directors in case of struck companies. S. 176 is applicable only when the company has discontinued the business. (AY. 2015-16)