Income tax refund in case of struck of companies

A private ltd company was struck off in 2006 by the ROC,last tax return for that year duly filed and intimated to Depatt the fact that company is struck off .Bank accounts were also closed. Inadvertently PAN of the company could not be deactivated.  The same fact has come to the knowledge of the ex-directors on receipt of notice u/s 148 from the deptt. When they enquired the tax official ,they found some persons has mistakenly reflected TDS  entries in the PAN of the Company. These person were contacted by the ex directors.The assesment was completed u/s 147 taking the TDS entry as income and the demand u/s 156 was raised.

After reversal of TDS entry which came late (i.e. after completion of assessment proceedings)The directors went into the appeal after depositing 20% of the said demand through directors personal bank account (for stay purposed) and appeal was decided in the favour of company.

Now the isuue arises here is that since company does not have bank account and tax official is hesitant to issue the refund of 20% deposited earlier, in the name of directors. He does not have good knowledge about this kind of exceptional circumstances.

What process can we follow to get the refund as we cant have the bank account opened in the name of company (as it is a struck off company)?

Please guide.

 

Replies (5)
Quick Summary
This discussion addresses the complex issue of claiming an income tax refund for a private limited company that has been struck off by the Registrar of Companies. Despite the company no longer existing, a notice under section 148 was received due to erroneous TDS entries reflecting on its PAN. After the assessment was completed and an appeal was won, the ex-directors face difficulties in receiving the refund of a deposit made for a stay, as the company cannot open a bank account and tax officials are hesitant to issue the refund in the directors' names.

Only in case of Filing of ITR.

CA RKM
9038835683

Check with higher officials in the jurisidiction like JC/Addl. commissioner or Commissioner if possible. There is no prescribed procedure. It is at the discretion and satisfaction of the officials

Hi Qasim,  We too are facing the same issue. Is there any favourable action from the Income tax department? Please advice.

We are currently facing this issue. In some cases the director general has instructed to issue refund to director after an application is made and department requested indemnity bonds from directors. The CPC will not refund. Don't even try. But in my case all the officers granted for manual refund but the director general rejected! So no uniformity and fixed process. We have proved that the director has repaid company's loans but rejected for no reasons. We have filed writ petition.

 

To claim a tax refund for a struck-off company where deposits were made from personal accounts, you cannot rely on CPC portals. You must pursue a manual application through the jurisdictional Commissioner/AO backed by indemnity bonds, personal bank statements proving the original payment, and appropriate legal undertakings. If administrative channels stall, a Writ Petition is often the remaining legal remedy.

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