R.P. Nagrath, Member - (1.) This is a suo moto petition filed by the Petitioner No. 1 company and its Managing Director Mr. Amit Mittal [Anil Mittal (sic)] for composition of the offences for which the Dy. Registrar of Companies, NCT of Delhi and Haryana has issued a Show Cause Notice dated 08.07.2016 (Annexure A-2) which is reproduced as under:- "WHEREAS, during the course of inspection it has been observed from the accounts of the company that, the statutory auditors has themselves qualified their report stating that "the company continue to carry deferred taxes assets of Rs. 396,071,991 on items comprising abnormal losses and other timing difference between Accounting and taxable income which in view of the management shall be realised on generation of taxable income in future years. However, in the absence virtual certainty supported by convincing evidence of availability of sufficient future taxable income recognition of deferred tax assets in our opinion is not consistent with the accounting principles as laid down under Accounting Standard 22, "Accounting for taxes on income" as notified under the Companies (Accounting Standards) Rules, 2006. Had the company reversed these deferred tax assets, the toss after tax for the year ended March 31, 2014 would have been higher and Reserve and Surplus as at March 31, 2014 would have been lower by Rs. 396,071,991 and deferred tax assets as at March 31, 2014 would have been lower by the same amount. In view of the above, it is clear that the deferred tax liability/assets amount has not been determined or ascertained by the company as required by accounting standards AS-22 'Accounting for taxes on Income' for which the company and officers in default are liable for action for violation of Accounting Standard-22 issued by ICAI read with section 211 of the Companies Act, 1956. AND WHEREAS, the matter was taken up with the company by inspecting officer but the reply of the company was not satisfactory. NOW THEREFORE, you are hereby called upon to show cause within 15 days from the date hereof as to why penal action as provided under Section 211(7) of the Companies Act, 1956 should not be initiated against you."
(2.) Notice of this petition was issued to the Registrar of Companies, NCT of Delhi and Haryana and report dated 16.01.2017 has been sent by the Deputy Registrar of Companies, NCT of Delhi and Haryana. I have heard the learned counsel for petitioner, Dr. Raj Singh, Registrar of Companies Punjab, Chandigarh and Himachal Pradesh who is representing Registrar of Companies, NCT of Delhi and Haryana and perused the record.
(3.) The petitioner-company was incorporated on 07.01.2002 and with its Registered Office at Gurgaon (now Gurugram) and therefore, the matter falls within the territorial jurisdiction of this Tribunal. As per report of the Deputy Registrar of Companies, NCT of Delhi and Haryana, the Paid-up Capital of the company is Rs. 1,29,62,19,800/- and the opening revenue as per the Profit & Loss Account for the year 2015 is Rs. 45,67,16,44,999/-. The petitioner is a listed company.;