Media Video Ltd, New Delhi V. DCIT CC-20, New Delhi

ITA 2642/DEL/2008

AI Insights

The case involves multiple appeals by M/s. Media Video Limited against the orders of the authorities below, concerning various assessment years. The appeals challenged the actions of the CIT(A) in confirming quantum additions, disallowances, and the imposition of penalty under Section 271(1)(c) of the Income Tax Act. During the proceedings, it was noted that the company had undergone a name change and was eventually dissolved. The Tribunal, considering the dissolution and the lack of representation from the assessee, decided to dismiss the appeals as they had become infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121559 (ITAT-DELHI)
• Duration Of Justice: 15 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-06-2023
• Assessment Year: 2005-2006
• Appeal Filed On: 05-08-2008
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 Assessment Years 2002-03, 2003-04, 2004-05 & 2005-06 M/s. Media Video Limited B-86/1, Okhla Indl. Area Phase-II New Delhi. Vs. DCIT Central Circle-20 New Delhi. TAN/PAN: AAACM6996L (Appellant) (Respondent) Appellant by: None Respondent by: Shri N.C. Swain, CIT-DR Date of hearing: 20 06 2023 Date of pronouncement: 08 08 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The ca pt ione d appeal s have been fi l ed b y t he assessee agai nst t he or ders of t he aut horit i es bel ow. I T A N o . A Y C I T ( A ) o r d e r d a t e A s s e s s i n g O f f i c e r o r d e r d a t e S e c t i o n u n d e r w h i c h a p p e a l i s f i l e d 2 6 5 0 / D e l / 2 0 0 8 2 0 0 2 - 0 3 C I T ( A ) - I , N e w D e l h i ; 2 3 . 0 5 . 2 0 0 8 2 9 . 1 2 . 2 0 0 6 1 5 3 C / 1 4 3 ( 3 ) 2 6 5 1 / D e l / 2 0 0 8 2 0 0 3 - 0 4 C I T ( A ) - I , N e w D e l h i ; 2 3 . 0 5 . 2 0 0 8 2 9 . 1 2 . 2 0 0 6 1 5 3 A / 1 4 3 ( 3 ) 2 6 5 2 / D e l / 2 0 0 8 2 0 0 4 - 0 5 C I T ( A ) - I , N e w D e l h i ; 2 9 . 1 2 . 2 0 0 6 1 5 3 A / 1 4 3 ( 3 ) I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 2 2 3 . 0 5 . 2 0 0 8 2 5 6 6 / D e l / 2 0 0 8 2 0 0 2-0 3 C I T ( A )-I , N e w D e l h i ; 2 8 . 0 6 . 2 0 0 7 2 8 . 0 6 . 2 0 0 7 2 7 1 ( 1 ) ( c ) 2 5 6 7 / D e l / 2 0 0 8 2 0 0 3 - 0 4 C I T ( A ) - I , N e w D e l h i ; 4 . 6 . 2 0 0 8 2 8 . 0 6 . 2 0 0 7 2 7 1 ( 1 ) ( c ) 2 5 6 8 / D e l / 2 0 0 8 2 0 0 4-0 5 C I T ( A )-I , N e w D e l h i ; 4 . 6 . 2 0 0 8 2 8 . 0 6 . 2 0 0 7 2 7 1 ( 1 ) ( c ) 2 6 4 2 / D e l / 2 0 0 8 2 0 0 5 - 0 6 C I T ( A ) - I , N e w D e l h i ; 2 3 . 0 5 . 2 0 0 8 2 9 . 1 2 . 2 0 0 6 1 4 3 ( 3 ) 2. The assessee as per t he capt i oned appeal s has chall eng ed the acti on of t he CI T( A) in confir mi ng t he qua nt um a ddi ti ons and di sall owanc es and al so i mposit i on of penal t y ther eon under Secti on 271( 1)(c) of the Act f or var ious assessment years capt ione d above. 3. When the mat ter was cal led f or hea ri ng, none a ppear ed for the assessee. Fro m t he case recor ds, i t is bor ne out t hat mul ti pl e oppor tuni t ies hav e been gi ven whi ch re mai ned unavailed b y t he assessee. However, a l etter fro m M/ s. Arun Ki shore & Co., Char tered Account ant dat ed 16.0 6.2 023 is pl aced on r ecor d f r o m where i t tr ans pi res t hat t he na me of the assessee was fir st cha nge d t o MV L I ndust ries Lt d. and t hereaf ter again change d t o Noesi s I ndust ri es Lt d. A cert i fi cate fr o m Re gi strar of Co mpanies in t hi s regar d was al s o pl aced. Si mult aneousl y, a lett er dated 07. 03. 2022 fr o m the li qui dator is also placed on recor d w hi ch reads as under: D a t e : 0 7 . 0 3 . 2 0 2 2 T o , I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 3 P r e m A d i p R i s h i S u s p e n d e d D i r e c t o r o f N o e s i s I n d u s t r i e s L i m i t e d , F - 7 9 / 1 8 W 1 L a n e S a i n i k F a r m K h a n p u r P u s h p a B h a w a n , N e w D e l h i 1 1 0 0 6 2 S u b i e c t : - I n t i m a t i o n o f D i s s o l u t i o n O r d e r o f N o e s is I n d u s t r i e s L i m i t e d D e a r S i r / M a d a m , I , Y o g e s h K u m a r G u p t a , a p p o i n t e d a s L i q u i d a t o r o f th e N o s i s I n d u s t r i e s L i m i t e d ( " C o m p a n y " ) C I N N o . L 3 2 1 0 9 D L 1 9 8 6 P L C 0 2 6 2 7 3 , b y H o n ' b l e N C L T N e w D e l h i B e n c h I V v i d e O r d e r n o . ( I B ) - 2 0 1 ( P B / 2 0 1 8 D a t e d 2 8 . 1 1 . 2 0 1 9 , h e r e b y i n f o r m y o u t h a t t h e L i q u i d a t i o n p r o c e s s o f th e C o m p a n y h a d b e e n c o m p l e t e d a n d a D i s s o l u t i o n a p p l i c a t i o n f i l e d w i t h t h e H o n ' b l e T r i b u n a l h a s b e e n a c c e p t e d a n d t h e d i s s o l u t i o n o r d e r o f t h e C o m pa n y h a s b e e n p a s s e d v i d e o r d e r n o . I A N o . 2 7 9 2 / N D / 2 0 2 1 i n ( I B ) 2 0 1 / ( N D )/ 2 0 1 8 d a t e d 2 1 . 0 2 . 2 0 2 2 ( C o m m u n i c a t e d o n 2 5 . 0 2 . 2 0 2 2 ) ( C o p y o f t he o r d e r d a t e d 2 1 . 0 2 . 2 0 2 2 a t t a c h e d h e r e w i t h ) . P l e a s e f i n d t h i s l e t t e r a s t h e i n t i m a t i o n o f t h e d is s o l u t i o n o r d e r o f t h e c o m p a n y f o r t h e p u r p o s e o f y o u r i n f o r m a t i o n a n d r e co r d s R e g a r d s T h a n k i n g y o u Y o u r f a i t h f u l l y . S d / - Y o g e s h K u m a r G u p t a I P R e g i s t r a t i o n n o . I B B I / I P A - 0 0 3 / I P - N 0 0 0 7 8 / 2 0 1 7 - 1 8 L i q u i d a t o r f o r N o e s i s I n d u s t r i e s L i m i t e d 5. Al ong wit h t he l et ter of the l iqui dator , an or der of t he Nat ional Co mpa n y L aw Tri bunal , New Delhi i n IA 2792/ ND/ 2021 i n Co mpan y Peti t ion No. 201 ( ND) / 2018 dat ed 21. 02. 2022 was annexe d. The rel evant or der of dissol ut ion of assessee-co mpa n y b y N C LT is r epr oduce d her ei n for rea d y refer ence: “ 1 . T h e p r e s e n t a p p l i c a t i o n i s f i l e d b y a p p l i c a n t / li q u i d a t o r u n d e r S e c t i o n 5 4 o f t h e I n s o l v e n c y a n d B a n k r u p t c y C o d e , 20 1 6 , ( h e r e i n a f t e r r e f e r r e d a s ‘ t h e C o d e ’ ) f o r d i s s o l u t i on o f t h e c o r p o r a t e d e b t o r . 2 . B r i e f f a c t s o f t h e p re s e n t c a s e a r e t h a t t h i s T ri b u n a l v i d e i t s o r d e r d a t e d 2 8 .0 9 . 2 0 1 8 h a d a d m i t t e d t h e c a p t i o n e d p e t i t i on u n d e r s e c t i o n 9 o f t h e I B C c o d e , 2 0 1 6 a n d M r . Y o g e s h K u m a r G u p t a , an I n s o l v e n c y P r o f e s s i o n a l h a v i n g R e g i s t r a t i o n N o . I B BI / I P A - 0 0 3 / P0 0 0 7 8 / 2 0 1 7 - 2 0 1 8 / 1 0 7 0 1 w a s a p p o i n t e d a s I n t e r i m R e s o l u t i o n P r o fe s s i o n a l ( h e r e i n a f t e r r e f e r r e d a s " a p p l i c a n t " ) . 3 . I n a c c o r d a n c e w i t h t h e r e s o l u t i o n o f C o C i n i t s 1 0 l m e e t i n g , t h e I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 4 a p p l i c a n t f i l e d a n a p p l i c a t i o n d a t e d 0 1 .0 7 . 2 0 1 9 w i th t h i s T r i b u n a l u n d e r C A No . 5 6 8 / N D / 2 0 1 9 f o r l i q u i d a t i o n o f c o r p o rat e d e b t o r a n d h i s c o n s e n t t o a c t a s a l i q u i d a t o r o f t h e c o r p o r a t e d e b t o r a n d th i s T r i b u n a l v i d e o rd e r d a t e d 2 8 .1 1 . 2 0 1 9 t h e c o rp o r a t e d e b t o r w a s o r d e r e d t o b e l i q u i d a te d a n d a p p o i n t e d t h e a p p l i c a nt a s L i q u i d a t o r . 4 . T h a t t i l l l a s t d a t e o f f i l l i n g t h e c l a i m s b y t h e s t a k e h o l d e r s u n d e r l i q u i d a t i o n p ro c e s s t h e l i q u i d a t o r r e c e i v e d c l a i m s f r o m N i n e f i n a n c i a l C r e d i t o r s a n d T w o O p e ra t i o n a l c r e d i t o r s ou t o f w h i c h t h e a p p l i c a n t a c c e p t e d t h e c l a i m s o f 9 F i n a n c i a l C r e d i to r s a n d I O p e ra t i o n a l C r e d i t o r a n d p r e p a r e d l i s t o f s t a k e h o l de r s . 5 . Ap p a r e n t l y , t h e a p p l i c a n t d i s t r i b u t e d r e a l i z e d fu n d s t o t h e c r e d i t o r s i n a c c o r d a n c e w i t h s e c t i o n 5 3 o f t h e I B B I, c o d e , 2 0 1 6 o n 1 8 . 0 6 .2 0 2 0 , a f t e r h o l d i n g o f t h e p o r t i o n o f S B I G l ob a l F a c t o r b e i n g a F i n a n c i a l C r e d i t o r a n d a s a s u b s e r v i e n t c h a rg e h ol d e r o v e r t h e a s s e t s o f t h e c o rp o r a t e d e b t o r . F u r t h e r i t i s p e r t in e n t t o m e n t i o n h e r e t h a t t h e a p p l i c a n t d i s t r i b u t e d t h e a b o v e m e n t io n e d r e a l i z e d v a l u e i n c l u d i n g t h e r e i m b u r s e m e n t o f C I R P c o s t b o rn b y t h e F i n a n c i a l C r e d i t o r s . F u r t h e r m o r e , t h e a p p l i c a n t i n fo r m e d a l l S C C m e m b e r s a n d o t h e r c r e d i t o r s a b o u t t h i s r e a l i z a t i o n a n d d i s t r i b u t i o n o f f u n d v i a m a i l d a t e d 1 8 .0 6 . 2 0 2 0 a l o n g w i t h a l l a nn e x u r e s o f D i s t r i b u t i o n s h e e t a m o u n t , t o t a l c o s t o f L i q u i d a t i on a n d a m o u n t a v a i l a b l e f o r D i s t r i b u t i o n , L i q u i d a t o r s f e e s , C I R P c o s t , s t a t u s o f r e c e i p t o f C I R P c o s t , a n d p ro g r e s s r e p o r t . 6 . A s t h e l i q u i d a t i o n p r o c e s s o f t h e c o r p o r a t e d e b to r w a s i n i t i a t e d o n 2 8 . 1 1 .2 0 1 9 a n d w a s s u p p o s e d t o b e c o n c l u d e d o n o r be f o r e 2 7 . 1 1 .2 0 2 0 b u t d u e t o i m p o s i t i o n o f n a t i o n - w id e l o ck d o w n i n t h e w a k e o f n o v e l c o ro n a v i r u s a l l t h e l i q u i d a t i o n a c t iv i t i e s h a l t e d a n d d u e t o p e n d e n c y o f a b o v e m e n t i o n e d a p p l i c a t i o n s u n de r I A . N o 2 6 0 4 o f 2 0 2 0 a n d 3 1 6 9 o f 2 0 2 1 t h e l i q u i d a t i o n p ro c e s s c ou l d n o t b e c o m p l e t e d o n t i m e . F u r t h e r f o r t h e p u r p o s e o f e x c l u s i o n o f t h e l o c k d ow n p e r io d a n d p e r i o d o f p e n d e n c y o f c e r t a i n a p p l i c a t i o n s f r o m t h e l i q u i d a t i o n p e r i o d , t h e a p p l i c a n t f i l e d a p p l i c a t i o n u n d e r I A - 5 53 / N D / 2 0 2 1 . 7 . T h a t a f t e r m a k i n g t h e l i q u i d a t i o n a c c o u n t b a l a n ce z e r o , t h e l i q u i d a t o r g o t t h e b a n k a c c o u n t n u m b e r 0 3 8 8 1 1 0 0 0 6 5 21 6 m a i n t a in e d w i t h P u n j a b a n d S i n d B a n k b e i n g u s e d i n t h e l i q u i d at i o n p r o c e s s c l o s e d w i t h t h e b a n k e r o n 2 5 . 0 6 .2 0 2 1 . T h e b a n k s t a te m e n t o f t h e a c c o u n t d e p i c t i n g z e ro b a l a n c e a s o n 2 5 . 0 6 .2 0 2 1 i s p l a c e d o n r e c o rd . 8 . T h e l i q u i d a t o r h a s p r e p a r e d f i n a l r e p o r t a n d c o mp l i a n c e c e r t i f i c a t e i n F o r m H s t a t i n g t h e a f f a i r s i n l i q u i da t i o n p ro c e s s o f t h e c o r p o r a t e d e b t o r a n d a n n e x e d i n a c c o r d a n c e w i t h R e gu l a t i o n 4 5 o f I B B I ( L i q u i d a t i o n P r o c e s s ) R e g u l a t i o n , 2 0 1 6 f o r t h e p u r p o s e o f f i l i n g w i t h N C L T a s r e q u i r e d i n t h e r e g u l a t i o n . 9 . T h a t i n a c c o rd a n c e w i t h s u b - r e g u l a t i o n 1 5 o f I B BI ( L i q u i d a t i o n P r o c e s s ) R e g u l a t i o n , 2 0 1 6 , t h e r e c e i p t s a n d p a y m e n ts o f t h e l i q u i d a t o r d u r i n g t h e l i q u i d a t i o n p r o c e s s h a v e b e e n d u l y a u d i t e d b y C A a n d s u b m i t t e d t o N C L T . I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 5 1 0 . T h e l i q u i d a t o r h a s c o m p l i e d w i t h a l l h i s s t a t u to r y o b l i g a t i o n s t o l i q u i d a t e t h e c o r p o ra t e d e b t o r a n d c o n d u c t e d a l l d ue d i l i g e n c e ' s i n l i q u i d a t i o n p r o c e s s . 1 1 . I t i s p e r t i n e n t t o m e n t i o n h e r e t h a t s u b j e c t t o p ro v i s i o n i n g o f e x c l u s i o n a n d e x t e n s i o n b y t h e O r d e r o f t h i s T r i b u na l v i c e o r d e r d a t e d 0 5 . 0 2 . 2 0 2 1 t h i s l i q u i d a t i o n a p p l i c a t i o n su p p os e d t o b e f i l e d o n o r b e f o r e 0 3 .0 6 .2 0 2 1 b u t d u e to i m p o s i t i o n o f l o c k d o w n b y D e l h i G o v e rn m e n t . a s a p r e v e n t i v e m e a s u r e i n t h e w a k e o f s e c o n d w a v e o f C O V I D - 1 9 f r o m 2 0 .0 4 . 2 0 2 1 t o 0 6 . 0 6 . 2 0 2 1 t h e l i q u i d a ti o n a c t i v i t i e s o f t h e c o r p o r a t e d e b t o r c o u l d n o t b e c o m p l e t e d a n d t h i s d i s s o l u t i o n a p p l i c a t i o n c o u l d n o t b e f i l e d w i t h i n t i m e . 1 2 . A s a c o n s e q u e n c e , t h r o u g h t h i s O r d e r i t i s h e r eb y d e c l a r e d t h a t n o t o n l y i t i s j u s t a n d e q u i t a b l e b u t b e c a u s e o f t he f a c t t h a t a l l t h e a s s e t s o f t h e c o r p o ra t e d e b t o r h a s b e e n r e a l i z e d a nd t h e r e i s n o t h in g l e f t i n t h e c o r p o ra t e d e b t o r , t h i s i s a f i t c a s e f or o rd e r o f d i s s o lu t i o n T h e c o rp o r a t e d e b t o r M / s N o s i s I n d u s t r i e s L i m i t e d , s t a n d : ' D i s s o l v e d ' f r o m t h e d a t e o f t h i s O r d e r . 1 3 . S i n c e t h e C o m p a n y s t a n d s D i s s o l v e d v i d e t h i s o rd e r a n d n o p r o c e e d i n g s a r e n o w p e n d i n g , t h e r e f o r e t h e R e g i s t r y i s d i r e c t e d t h a t t h e c a s e f i l e o f p r o c e e d i n g s b e c l o s e d a n d b e c o n s ig n e d t o r e c o rd s . 1 4 . C o p y o f t h i s O r d e r s h a l l b e f o r w a rd e d w i t h i n 15 d a y s t o th e c o n c e r n e d p a r t i e s a n d t h e R e g i s t r a r o f C o m p a n i e s h av i n g j u r i s d i c t i o n , f o r u p d a t i n g t h e s t a t u s o f c o r p o r a t e d e b t o r o n m a st e r d a t a a n d f u r t h e r n e c e ss a r y a c t i o n a s p r e s c r i b e d u n de r L a w . ” 6. On pe rusal of t he afor esai d NCLT or der, i t is n oti ced t hat the assessee-co mp an y has bee n or dered to be di ssolve d fr o m t he dat e of t he NC LT orde r. I n t he wake of dissol uti on of assessee- co mpan y, we do not see muc h pur pose i n keeping such infructuous a ppe al s al ive, mor e so, i n t he a bsence of a n y assi st ance f ro m t he assessee. Hence, al l t he capt ioned appeals nee d to be consi gned to t he reco rd. 7. I n vi ew of the as sessee-co mpan y havin g been wound up and t here bein g co mplete absence of re prese ntat ion i n t he ma tt er , the a ppeal of t he assessee i s di s mi ssed with a l ibert y t o assessee to seek re medi al me asures i n accord ance wit h l aw as and w hen t he name of the c o mpa n y is rest ore d or wher e it is I.T.As. No.2650, 2651, 2652, 2566, 2567, 2568 & 2642/DEL/2008 6 ot her wi se necessa r y t o do so i n the int erest of the par ti es. 8. I n the r esul t, all the appeal s of the assessee ar e di s mi ssed ex- par te i n l imine. Order pronounced in the open Court on 08/08/2023 Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /08/2023 prabhat