TMI Blog2012 (4) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... considered opinion they are also entitled to file an appeal u/s 246 and verify the Form No. 35 by signing in the capacity of director. CIT(A) is directed to admit the appeal – Decided in favor of petitioner. - IT Appeal No. 3159 (Ahd.) of 2011 - - - Dated:- 30-3-2012 - MUKUL Kr.SHRAWAT, T.R. MEENA, JJ. ORDER Mukul Kr. Shrawat, Judicial Member This is an appeal arising from the order of learned CIT(A)-6, Ahmedabad dated 11/11/2011, wherein the assessee's appeal was dismissed by holding the said appeal as an invalid appeal. The assessee has filed the said appeal against the levy of penalty under section 271(1)(c) of the Act. Grounds raised in the present appeal by the appellant are argumentative and descriptive, hence not re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication for the filing of appeal. There cannot be any appeal by a company which is not in existence. In view of this, this appeal is treated as invalid and accordingly dismissed. "Unquote. Being further aggrieved now the assessee is in second appeal before us. 4. From the side of the appellant learned AR Mr. Paumil Shah appeared. He has argued that the company was running in losses, further, on account of family problems, applied to Registrar of Companies for striking off the name of the company under section 560 of the Companies Act, with effect from 27.05.2005. The company has also informed the Revenue Department for the cancellation of Permanent Account Number. He has informed that through a letter dated 26/10/2007 the company has as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty was imposed, hence there ought to be some legal remedy available to such a company who is no more in existence. Further in a true spirit to assist the Bench to arrive at a correct decision, he has explained some of the provisions of the Companies Act. 6. Having heard the submissions of both the sides and after appreciating the preliminary facts of the case, we are also of the view that a strange situation had arisen due to the fact that on one hand the Revenue Department has assessed the company, simultaneously also imposed the penalty on the company when the said company was under the process of striking off the name from the register of the Registrar of Companies. Meaning thereby, the Revenue Department has considered the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nteresting to note that as per one of the proviso annexed to this section, the situation taken into consideration are three fold; (i)that where the company is being wound up, whether under the orders of the Court or otherwise or (ii) that any person has been appointed as the receiver of the company so shall be signed by the liquidator.(iii) An another situation has also been taken into account by the Statute that where the management of the company has been taken over by the Central Government, then the return of the company shall be signed and verified by the Principal Officer. 6.2. On examination of these provisions, it is clear that the other three conditions, namely liquidation or wound up or taken over of the company, has been deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Registrar. Under the said provisions an affidavit is to be given individually by every Director. There is a provision to furnish an indemnity bond as well. Hence Director has to indemnify and undertake in writing to pay and settle all lawful claim arising in future after the striking off the name and also to indemnify to settle all lawful claims. As per section 560, Registrar has power to strike defunct company off the register, provided that the liability, if any, of every Director who has exercising any power of management shall continue and may be enforced as if the company had not been dissolved. Rather, one of the sub-section prescribes that up to 20 years from the publication in the official Gazette the name of the company ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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