TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 26
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.... in view of the admitted facts & confirmation, from the donors alongwith their PAN details, copies of the Bank accounts statements, copies of their Income Tax Returns, the particulars of the Assessing Officer given in ITR copies, certificate from the drawee Bank having received the said proceeds of the cheques through payee account banking channels, in sustaining the captioned additions of Rs.8.00 Lacs from the captioned companies, u/s 68 read with section 115BBE of the Act merely on the ground that Registrar of companies have struck off their names and taken action for non compliance under the Companies Act, whereas the said entities are continued to be regularly assessed under the Income Tax and are recognized entities ? 2. That in view of the facts and in law, as stated in ground No. 1 supra, the CIT(A) have erred and was unjustified in upholding additions of Rs.8.00 Lacs as the appellant duly discharged its complete onus as to names/addresses of the impugned companies, their identities, their financial capability and sources of the funds as contemplated u/s 68 read with section 115BBE and also 115 BBC of the Act. 3. That both LD. ACIT (Exemptions) while making the impugned ....
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....n u/s 133(6) was completed and the corporate body had taken part in verification before the revenue authorities. The copy of the bank transaction from APB pages 8 to 23 was duly filed as evidence for genuine transaction. The ld. Counsel also relied on the order of the ITAT, Delhi Bench in case of Patanjali Yogpeeth vs. Addl. CIT 151 DTR 114 and also the CIT vs. Gopal Shri Scrips (P) Ltd. (2019) 307 CTR 596 (SC). As per the counsel the entire addition on the basis of the assumption that the corporate bodies had made the transaction by recycled the cash of the assessee. But there is no such evidence related to the claim of the revenue. 4. The ld. Sr. DR relied on the order of the ld. CIT(A) in page no. 16 para 4.12 to 4.15 which is reproduced as below: "4.12 However, as regards the donations received from 3 companies are concerned, the appellant has reiterated the submissions filed before the AO. It is an accepted fact that a corporate entity is an artificial juridical person but it is also true that behind this artificial person, lies a bunch of natural persons who act for and on behalf of the company. It is also an accepted fact that a corporate entity exists for making/maximisi....
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....ity the transaction of the assessee, the credentiality and the filing of return related to substantiate the claim for receiving the donation by the assessee. But in fact, the corporate bodies are artificial juridical person. Under Section - 248, Companies Act, 2013, the name of company can be removed /struck off by the ROC. Here, we quick look on the Section - 248, Companies Act, 2013 read with Section 560 of Companies Act, 156. "CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES 81Power of Registrar to remove name of company from register of companies.81a 82248. (1) Where the Registrar has reasonable cause to believe that- (a) a company has failed to commence its business within one year of its incorporation; 83[or] (b) 84[***] (c) a company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under 84a[section 455; or] 84b[(d) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effe....
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....t notwithstanding the undertakings referred to in this sub-section, the assets of the company shall be made available for the payment or discharge of all its liabilities and obligations even after the date of the order removing the name of the company from the register of companies. (7) The liability, if any, of every director, manager or other officer who was exercising any power of management, and of every member of the company dissolved under sub-section (5), shall continue and may be enforced as if the company had not been dissolved. (8) Nothing in this section shall affect the power of the Tribunal to wind up a company the name of which has been struck off from the register of companies." "Section 560 in The Companies Act, 1956 560. Power of Registrar to strike defunct company off register. (5) At the expiry of the time mentioned in the notice referred to in sub- section (3) or (4), the Registrar may, unless cause to the contrary is previously shown by the company, strike its name off the register, and shall publish notice thereof in the Official Gazette; and on the publication in the Official Gazette of this notice, the company shall stand dissolved: Provided that....