AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1483
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....ties had sought for information and explanations under section 206(1) of the Act. The company duly replied to the notice by a letter dated 16 August 2021 and provided a point wise reply. Subsequently, after a period of seventeen months, the company received a summons dated 21 March 2023 under section 207(3)(b) of the Act, directing the concerned officers of the company including the auditors to be examined on oath personally in relation to the letter dated 31 March 2021. Significantly, the company had timely filed all its financial statements and statutory filings for the relevant periods. Thereafter, the company received a communication dated 2 June 2023 issued under section 206(4) of the Act. By the said communication, the respondent authorities sought for queries and further information on the basis of financial information for the years 31.03.2020, 31.03.2021 and 31.03.2022 respectively and furnished necessary clarifications. Pursuant to the above, the respondent authorities on the ground of alleged violations under section 129(1) read with Schedule III Division II, 6E(I) i, (ii), (iii), (vii) of the Act, section 129(I), Schedule III, 6F (III)(c) of Division II and Schedule III....
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....on of the fact that they do not disclose- (1) in the case of an insurance company, any matters which are not required to be disclosed by the Insurance Act, 1938 (4 of 1938), or the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999); (2) in the case of a banking company, any matters which are not required to be disclosed by the Banking Regulation Act, 1949 (10 of 1949); (3) in the case of a company engaged in the generation or supply of electricity, any matters which are not required to be disclosed by the Electricity Act, 2003 (36 of 2003); (4) in the case of a company governed by any other law for the time being in force, any matters which are not required to be disclosed by that law. 206. Power to call for information, inspect books and conduct inquiries.-(1) Where on a scrutiny of any document filed by a company or on any information received by him, the Registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company- (a) to furnish in writing such information or explanation; or (b)....
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....ive queries raised by the respondent authorities and the response of the company are set out below: SI.No. Allegations contained In the Order purportedly under Section 206 (4) @ Page 66A Company's Response dated 7th June 2023 @ Pg 78-96 Reference in the Petition 1. Contravention of Section 129(1) read Schedule III, Division-II, 6B (IV) (a) of the Companies Act, 2013 The Company has shown in the financial statements of the Company as at 31st March, 2020, an amount of Rs. 55,851/- as "Balance with Banks" under "Cash and cash equivalents". Further, it was already mentioned in Note 3 of the financial statement that the amount is lying with Oriental Bank of Commerce. Moreover, the balance lying in the bank account of the Company is for general business purpose and for day-to-day affairs of the Company and not for any specific purpose Response dated 7^th June 2023 Balance Sheet 2. Contravention of Section 129(1) read with Schedule-III, Division-II, 6B(V)(i)(c) of the Companies Act, 2013 The Company has shown in the financial statements of the Company as at 31st March, 2021 an amount of Rs. 98,00,000/- as advances "to others" under the head "Shor....
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....or, trivial, and technical in nature which comprised of typographical errors or simple omissions and were ascertainable upon examination of the accounts of the company. The petitioners have throughout acted reasonably and complied with all acceptable norms of accountancy and this had been specifically drawn to the attention of the respondent authorities. If the respondents were of the view that any further clarification or verification was necessary, it was open for them to inspect the books of accounts of the company. Strangely, there has been no attempt to even deal with the responses on merits which had been submitted by the company. The alleged non-compliances do not appear to be wilful nor deliberate in nature. There is no allegation of mala fides attributable to the petitioners. A person seeking to be excused under section 463(2) of the Act for contravention of any provision of the Act is required to satisfy the Court that he or she acted honestly and reasonably and that there was no mala fide intent of the petitioners. There is not even an allegation of falsity or suppression or dishonest conduct or misfeasance against the petitioners. (Deba Prasad Roy & Another vs. Regional....
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....offence which is punishable with the more severe punishment or, as the case may be, the most severe punishment. Explanation.-For the purpose of computing the period of limitation, the relevant date shall be the date of filing complaint under section 223 or the date of recording of information under section 173." 11. In this context, a chart reflecting that any action was ex facie barred by limitation is set out below: Alleged Contravention Date of knowledge of the Respondent, i.e., date when balance sheet was filed by the Company with the ROC Expiration of Limitation Section 129(1) read with Schedule-III, Division-II, 6E(I)(i),(ii),(iii) & (vii) of the Companies Act, 2013 22nd January, 2021 (Documents annexed as Annexure-A) 22nd January, 2022 Section 129 (1) read with Schedule-III, 6F(III)(c) of Division-II of the Companies Act, 2013 10th December, 2021 (Documents annexed as Annexure-B) 10th December, 2022 Section 129 (1) read with Schedule III, Division-II, Part-I, A under the Companies Act, 2013 1st November, 2022 (Documents annexed as Annexure-C) 1st November, 2023 12. As such, the respondent had knowledge of the commission of t....