Case Law Details
Pandian Anbalagan Vs ITO (Madras High Court)
Introduction: The case of Pandian Anbalagan Vs ITO brought before the Madras High Court centers on the legality of an assessment order passed against a company that had been struck off from the official register of companies. This article delves into the details of the case, emphasizing the court’s ruling that the assessment order is void and requires the revival of the company for proper proceedings.
Background Information: The petitioner, Pandian Anbalagan, was the Director of Speed & Safe Freight Systems India Private Limited, a company that had been officially struck off from the company register on 29.10.2019. The petitioner received a notice under Section 148 of the Income Tax Act on 31.03.2021, initiating the reopening of the assessment for the year 2015-16.
Legal Argument: The petitioner’s counsel argued that it is not permissible to reopen the assessment against a company that has already been struck off. They contended that the respondent/Department should follow the procedure for the revival of the company as outlined in Section 252 of the Companies Act, in conjunction with Rules 11 and 87 of the NCLT Rules. Only after the company’s revival can the Authority proceed with reopening the assessment and issuing further orders.
Counterargument: The respondent’s counsel countered by referencing Sections 176(5) and 176(7) of the Income Tax Act, asserting that the Department has the right to pass an assessment order against the Principal Officer of the struck-off company.
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