DCIT CC 2(2), MUMBAI V. MR GIRISH JUNEJA (IRP IN THE CASE OF M/S RELIABLE PAPER (I) LTD, MUMBAI

MA 395/MUM/2022

AI Insights

The case involves multiple Miscellaneous Applications (MAs) filed by the Revenue against Shri Girish Juneja, the Interim Resolution Professional (IRP) for Reliable Paper (I) Ltd., concerning various assessment years from 2004-05 to 2010-11. The Revenue sought to recall an order and decide the appeal on merits. However, it was reported that the company had been liquidated, and all assets were sold, with proceeds distributed according to the waterfall mechanism prescribed under section 53 of the Insolvency and Bankruptcy Code, 2016. Unfortunately, the proceeds were insufficient to cover the dues of the secured creditors, let alone the Income Tax Department, which is lower in the priority list.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26520 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Laws Referred To: Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASIF KARMANI
• Keywords: Liquidation

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER MA No.395/Mum/2022 (Arising Out of ITA No.1662/Mum/2017) (Assessment Year :2004-05) MA No.408/Mum/2022 (Arising Out of ITA No.1443/Mum/2018) (Assessment Year :2006-07) MA No.409/Mum/2022 (Arising Out of ITA No.1444/Mum/2018) (Assessment Year :2010-11) MA No.410/Mum/2022 (Arising Out of ITA No.1445/Mum/2018) (Assessment Year :2009-10) MA No.411/Mum/2022 (Arising Out of ITA No.1446/Mum/2018) (Assessment Year :2008-09) MA No.412/Mum/2022 (Arising Out of ITA No.1447/Mum/2018) (Assessment Year :2007-08) & MA No.413/Mum/2022 (Arising Out of ITA No.1661/Mum/2017) (Assessment Year :2005-06) DCIT CC-2(2) Pratistha Bhavan 8th Floor, M.K. Road Mumbai- 400 020 Vs. Shri Girish Juneja (IRP in the case of M/s. Reliable Paper (I) Ltd., 93, Dadiseth Agiary Lane Kalbadevi Mumbai-400 002 PAN/GIR No. AAACD9643F (Appellant) .. (Respondent) MA No.395/Mum/2022 and others Girish Juneja (IRP in the case of Reliable Paper (I) Ltd., 2 Assessee by None Revenue by Shri Asif Karmani Date of Hearing 07/03/2025 Date of Pronouncement 07/03/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid Miscellaneous Applications have been filed by the Revenue for A.Y.2004-05 to 2010-11. 2. Before us ld. DR submitted following report. “It is submitted that the NCLT Mumbai Bench-IV has passed final order dated 24.02.2023 confirming the liquidation of the Company. The order of the same is enclosed herewith. With respect to the claim of the Income Tax Department, it is submitted that department had filed claim of Rs. 2,97,44,88,116/- out of which amount of Rs. 2,97,44,88,116/- was admitted (copy of Annexure-5 is enclosed herewith). It is further submitted that as per mall dated 17.09.2024, the official liquidator informed the undersigned that the Liquidation of the Reliable paper has been completed and the proceeds have already been realized and distributed in full. Further vide mail dated 24.09.2024, the official liquidator informed that the proceeds from auction of the assets of the Company have been distributed as per the waterfall mechanism prescribed u/s 53 of the Insolvency and Bankruptcy Code, 2016. It was informed that the proceeds were not sufficient to even cover the dues of the secured creditors. Hence, no payment could be made to the Income Tax Department which falls lower in the waterfall mechanism (copy of the mail is enclosed herewith). MA No.395/Mum/2022 and others Girish Juneja (IRP in the case of Reliable Paper (I) Ltd., 3 In view of the above, as the Company has been liquidated and the proceeds out of the sale of assets have been distributed fully, the Miscellaneous Applications filed by the department will not have material significance for the department.” 3. Since no payment could be made to Income Tax department, the entire purpose of recalling the order and deciding the appeal on merits could be infructuous exercise. Accordingly, Miscellaneous Applications filed by the Revenue are dismissed. 4. In the result, all the Miscellaneous Applications are dismissed. Order pronounced on 7th March, 2025. Sd/- (AMARJIT SINGH) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 07/03/2025 KARUNA, sr.ps MA No.395/Mum/2022 and others Girish Juneja (IRP in the case of Reliable Paper (I) Ltd., 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "