KRISHNAKUMAR V. INCOME TAX OFFICER

WP(C)/19086/2016

AI Insights

The case involves Krishna Kumar, the petitioner, challenging an assessment order (Ext.P7) issued by the Income Tax Officer against M/s.UNIFAB Latest Technologies Pvt. Ltd. The company had been struck off from the Registrar of Companies in 2007, a decision later restored by the court in 2015. However, the petitioner argued that the company, being struck off, should not be subject to any assessment. The respondent countered that under Section 177(1) of the Income Tax Act, the assessment could still be made against the association of persons, irrespective of the company's status on the register. The court dismissed the writ petition, allowing the petitioner to challenge the assessment in an appeal if desired.

• Counselvise Citation: [2016] 140 COUNSELVISE.COM (IT) 699260 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-06-2016
• Assessment Year: misc
• Other Referred Cases: Company Appeal No.19/2014
• Laws Referred To: Companies Act, Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: P NATH; N PRASAD
• Keywords: Assessment Order; Income Tax; Registrar of Companies; Struck off; Writ petition
• Section: 560(5); 177(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNESDAY, THE 8TH DAY OF JUNE 2016/18TH JYAISHTA, 1938 WP(C).No. 19086 of 2016 (I) ---------------------------- PETITIONER : ---------------------- KRISHNA KUMAR, KANIYAMKUDIYIL HOUSE, PBR-100, PMC, 10/320, IRINGOLE P.O., PATTAL, PERUMBAVOOR-683 542. BY ADVS.SRI.P.RAVINDRA NATH SRI.N.KRISHNA PRASAD RESPONDENT : ------------------------- INCOME TAX OFFICER, CORP. WARD 2(5), KOCHI, INCOME TAX DEPARTMENT, I.S.PRESS ROAD, ERNAKULAM-682 015. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-06-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C).No. 19086 of 2016 (I) --------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ---------------------------------------- EXHIBIT P1: TRUE COPY OF THE NOTIFICATION DATED 7.12.2007 WAS ISSUED UNDER SECTION 560(5) OF THE COMPANIES ACT. EXHIBIT P2: TRUE COPY OF THE JUDGMENT DATED 12.8.2015 IN CO APPEAL NO.19/2014. EXHIBIT P3: TRUE COPY OF THE COMMUNICATION DATED 3.9.2015 ISSUED BY THE PETITIONER. EXHIBIT P4: TRUE COPY OF THE COMMUNICATION DATED 8.1.2016 ISSUED BY THE PETITIONER. EXHIBIT P5: TRUE COPY OF THE COMMUNICATION DATED 27.1.2016 ISSUED BY THE PETITIONER. EXHIBIT P6: TRUE COPY OF THE COMMUNICATION DATED 21.3.2016 ISSUED BY THE PETITIONER. EXHIBIT P7: TRUE COPY OF THE ORDER DATED 24.3.2016 OF THE RESPONDENT. RESPONDENT(S)' EXHIBITS: NIL -------------------------------------------- /TRUE COPY/ P.S.TO JUDGE sts A.M. SHAFFIQUE, J. ============= W.P. (C) No. 19086 of 2016 =================== Dated this, the 8th day of June, 2016 J U D G M E N T This writ petition is filed challenging Ext.P7 order of assessment passed by the respondent against M/s.UNIFAB Latest Technologies Pvt. Ltd in respect of assessment year 2008-09. The main contention urged by the petitioner is that the company itself had been struck off from the register maintained by the Registrar of Companies as early as on 2007. The said action of the Registrar of Companies came to be challenged by rival group and though the name of the Company was restored to the register, in an appeal filed by the petitioner as Company Appeal No.19/2014, this court by judgment dated 12/8/2015 restored the action of the Registrar of Companies in striking off the name of the Company from the register. Therefore, the contention is that there could not be any assessment against the Company as such. 2. Standing counsel appearing on behalf of the respondent submits that even in case of association of persons W.P(C) No.19086/16 -:2:- being dissolved in terms of Section 177(1) of the Income Tax Act, it shall be open for the assessing officer to effect the assessment against the association of persons itself. Section 177(1) reads as under; “Where any business or profession carried on by an association of persons has been discontinued or where an association of persons is dissolved, the Assessing Officer shall make an assessment of the total income of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act shall apply, so far as may be, to such assessment.” This provision applies even in instances where name of Company is struck off from the register of companies. However, with reference to the liability, other provisions are available under the Income Tax Act to enable the respondent to recover the amount as assessed in Ext.P7 order. 3. In the said circumstances, I do not find any illegality in the respondent passing Ext.P7 order. It shall be open for the W.P(C) No.19086/16 -:3:- petitioner to challenge Ext.P7, if so advised, in an appeal as per the statutory formalities. Writ petition is, therefore, dismissed. Sd/- A.M. SHAFFIQUE, JUDGE Rp8/06/2016 //True Copy// P.S to Judge "