Tribunal orders restoration of company name, exempts time under Limitation Act

The Tribunal allowed the appeal, directing the Registrar of Companies (ROC) to restore the name of M/s. Blue Eye Infotech Pvt. Ltd. in the statutory register. The restoration was conditional upon the publication of a notice in two leading newspapers and the Official Gazette of India. The period consumed in the proceedings was exempted under the Limitation Act, 1963, to facilitate the initiation of legal actions against the company. The appeal was disposed of with no order as to costs.

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Issues Involved:
1. Restoration of the name of M/s. Blue Eye Infotech Pvt. Ltd. in the statutory register.
2. Pending reassessment proceedings by the Income Tax Department.
3. Compliance with statutory requirements and circulars issued by the Ministry of Corporate Affairs and CBDT.
4. Legal and administrative actions against the company.
5. Public interest and protection of Revenue/Central Government interests.

Issue-wise Detailed Analysis:

1. Restoration of the Name of M/s. Blue Eye Infotech Pvt. Ltd.:
The Income Tax Department filed an appeal seeking the restoration of the name of M/s. Blue Eye Infotech Pvt. Ltd., which was struck off by the Registrar of Companies (ROC), Ahmedabad, on 21.06.2017. The appeal argued that the company’s name needed to be restored to facilitate ongoing reassessment proceedings and prevent them from becoming barred by limitation.

2. Pending Reassessment Proceedings:
The appeal highlighted that reassessment proceedings for the financial year 2010-11 (assessment year 2011-12) were pending against the company, with alleged unpaid taxes amounting to Rs. 1,94,81,172. The Income Tax Department emphasized that the restoration of the company’s name was crucial to continue these proceedings.

3. Compliance with Statutory Requirements and Circulars:
The ROC, in its representation, justified the striking off of the company’s name due to non-compliance with statutory return filings. However, the ROC also referred to a CBDT circular dated 29.12.2017, which directed the filing of appeals for restoration in cases where reassessment or other proceedings were pending. The ROC expressed no objection to the restoration, subject to the conditions outlined in the circular.

4. Legal and Administrative Actions Against the Company:
The ROC and the Tribunal recognized that the company’s name should not have been struck off if any legal or administrative actions were pending. The Tribunal noted that the Income Tax Department had already initiated proceedings against the company for alleged income escapement, making it imperative to restore the company’s name to facilitate these actions.

5. Public Interest and Protection of Revenue/Central Government Interests:
The Tribunal emphasized the public interest in restoring the company’s name to protect the revenue interests of the Central Government. The restoration would enable the Income Tax Department and other regulatory authorities to proceed with legal actions against the company.

Conclusion:
The Tribunal allowed the appeal, directing the ROC to restore the name of M/s. Blue Eye Infotech Pvt. Ltd. in the statutory register. The restoration was conditional upon the publication of a notice in two leading newspapers and the Official Gazette of India. The period consumed in the proceedings was exempted under the Limitation Act, 1963, to facilitate the initiation of legal actions against the company. The appeal was disposed of with no order as to costs.

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