Struck-off company remains liable to tax proceedings; unexplained bank credits were also sustained for lack of source evidence.

A company struck off from the Register of Companies remained amenable to income-tax proceedings because the Companies Act preserves its existence for liabilities and obligations, including compliance with tax notices and assessment proceedings; the notice under section 148 and the reassessment were therefore valid. The addition for unexplained bank credits was also sustained because the assessee offered no source explanation before the lower authorities or the Tribunal, leaving the deposits unexplained and taxable under section 68. On both the jurisdictional objection and the merits of the cash credits, the challenge failed and the reassessment was upheld.

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Issues: (i) Whether notice issued under section 148 and the reassessment framed in the name of a company struck off from the Register of Companies were invalid. (ii) Whether the addition under section 68 for unexplained bank credits was sustainable.

Issue (i): Whether notice issued under section 148 and the reassessment framed in the name of a company struck off from the Register of Companies were invalid.

Analysis: The company had been struck off under the Companies Act, 2013, but the statutory scheme under sections 248 and 250 preserves the company's existence for the purpose of discharging liabilities and obligations. The Tribunal held that responding to tax notices and participating in assessment proceedings are liabilities or obligations within that saving provision. It also noted that restoration under section 252 remained available. Accordingly, the striking off did not render the company non-existent for the purpose of income-tax proceedings, and the notice under section 148 remained valid.

Conclusion: The challenge to the validity of the notice and reassessment failed and was decided against the assessee.

Issue (ii): Whether the addition under section 68 for unexplained bank credits was sustainable.

Analysis: The assessee did not furnish any explanation for the bank deposits before the lower authorities or before the Tribunal. In the absence of any source explanation, the credits remained unexplained and were liable to be assessed under section 68.

Conclusion: The addition under section 68 was upheld and was decided against the assessee.

Final Conclusion: The reassessment was sustained in law and on merits, and the appeal was dismissed in entirety.

Ratio Decidendi: A company struck off from the Register of Companies continues to be amenable to income-tax proceedings for liabilities and obligations saved by the Companies Act, and unexplained bank credits may be added under section 68 when no satisfactory source is proved.

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