Evra Tradex P. Ltd., located in Pitampura, New Delhi, faced a decisive setback in its legal battle against the Income Tax Department when its appeal under ITA 537/DEL/2019 was dismissed due to the company’s dissolution. The Income Tax Appellate Tribunal (ITAT), Delhi Bench, made the ruling on 17 February 2022, effectively closing the case on procedural grounds.
The appeal was originally filed in response to an order dated 05 November 2018 from the Commissioner of Income Tax Appeals-4, New Delhi, for the Assessment Year 2014-15. However, significant developments affected the company’s legal standing. Specifically, the Registrar of Companies, NCT of Delhi, issued a notification on 29 October 2019 under Section 248(5) of the Companies Act 2013, stating that Evra Tradex P. Ltd. had been struck off the list of active companies. This striking off occurred due to non-compliance with regulatory requirements, leading to the company’s absence from legal proceedings.
During the tribunal hearing, the Department of Revenue’s counsel highlighted the company’s dissolution, presenting it as a primary reason to dismiss the appeal. With no representation from the company and no contrary material facts to suggest ongoing legal or operational status, the tribunal accepted the dismissal as not maintainable.
The case underscores the critical importance of maintaining compliance with corporate regulations to sustain legal rights and capabilities. For companies engaged in disputes, especially those involving financial or tax-related issues, ensuring active and compliant status with the Registrar of Companies is paramount. This dismissal serves as a cautionary tale for other corporations to manage their legal and regulatory obligations meticulously to avoid forfeiting their rights to appeal in judicial matters.
The details of this case not only reflect the procedural aspects of corporate and tax law but also emphasize the consequences of corporate non-compliance. As the legal and tax landscape continues to evolve, businesses must remain vigilant and proactive in their corporate governance practices to safeguard their interests and uphold their standing in legal matters.
Evra Tradex P. Ltd.’s Appeal Dismissed Due to Company Dissolution for AY 2014-15
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