| Question And Answer | |
|---|---|
| Subject: | strike off by roc can AO pass orders under section 144 and tax |
| Category: | Income-Tax |
| Querist: | Narayana murthy auditors |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | dead person, Strike off by Registrar of Company |
| Date: | May 7, 2022 |
if in a private ltd co , strike off by roc can AO pass orders under section 144 and taxed . second question whether all receipts can be treated as income of a pvt ltd co who is builder . case laws in favour of assessee please
Section 176 of the Income – tax Act, deals with the provision relating to discontinues business, where any business or profession is discontinued in any assessment year, the income of the previous year up to the date of discontinued may, discretion of the Assessing officer be charged tax in that Assessment Year.
Sub section (3) of section 176 says that any person discontinuing any business or profession shall give to the Assessing Officer notice of such discontinuance within fifteen days thereof.
If any person failed to do so, then the Assessing Officer as per the provision of section 143 Assessing Officer may complete the assessment and passed order under section 144 and taxed the income of the assessee tax up to the date of discontinued of the business.
In CIT v. Tarachanthini Services (P.) Ltd. (2020) 118 taxmann.com 252 (Mad)(HC) case of the Assessee was picked up for scrutiny and after issuing summons, assessment was completed. Assessee filed appeal raising a plea that name of company was struck off from Register of Companies and same was published in Gazette on 25-5-2007, thus, assessment order having been passed on 31-12-2007, was a nullity as company became non-existent on and after 25-05-2007. High Court held that, at no point of time assessee informed Assessing Officer that its name had been struck off from Register of Companies, assessee did not file any document before Assessing Officer stating that there PAN had to be revoked and account had to be closed. When assessee failed to raise factual issue before Assessing Officer at first instance and consciously participated in assessment proceedings, did not bring fact to notice of Assessing Officer, plea of the assessee was rejected. Hourable High Court has referred the judgement of Supreme Court in Pr. CIT v. Maruti Suzuki India Ltd. ( 2019) 416 ITR 613 (SC)
It is the prime duty of the Assessee / any person to inform about the discontinuation of business within fifteen days to the respective assessing officer. The assessee may have to contest the appeal on merit of the case .