Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 289080 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
7 year(s) 2 month(s) 22 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-07-2023
Appeal Filed By
Assessee
Order Result
DismissedAllowed
Bench Allotted
K
Next Hearing Date
18-07-2023
Assessment Year
2010-2011
Appeal Filed On
08-05-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI SANDEEP SINGH KARHAIL, JM ITA No.3715/Mum/2016 (Assessment Year: 2010-11) ITA No.3619/Mum/2015 (Assessment Year: 2009-10) ITA No.7514/Mum/2014 (Assessment Year: 2007-08) DCIT 12(2 ) (1) R.NO. 223, 2 nd F lo or Aaykar Bha van M.K. Road, Mum bai-400 020 Vs. Etisalat DB Telecom Private Limited Office of official Liquidator, High Court of Bombay, Bank of India Building, 5 th Floor, M.G. Road, Fort, Mumbai-400 023 (Appellant) (Respondent) PAN No. AAKCS0136Q ITA No.3238/Mum/2016 (Assessment Year: 2010-11) CO No.107/Mum/2015 (Arising in ITA No. 3619/Mum/2015 for A.Y. 2010-11) CO No.101/Mum/2016 (Arising in ITA No. 7514/Mum/2014 for A.Y. 2007-08) Etisalat DB Telecom Private Limited Office of official Liquidator, High Court of Bombay, Bank of India Building, 5 th Floor, M.G. Road, Fort, Mumbai-400 023 Vs. DCIT 12(2 ) (1) R.NO. 223, 2 nd F lo or Aaykar Bha van M.K. Road, Mum bai-400 020 (Appellant) (Respondent) Assessee by : Shri Hiro Rai, AR Revenue by : Shri Dhiraj Kumar, Sr. DR Page | 2 ITA No.3715/Mum/2016 M/s Etisalat DB Telecom Private Limited; A.Y. 10-11 Date of hearing: 19.07.2023 Date of pronouncement : 31.07.2023 O R D E R PER BENCH: 01. ITA number 7514/M/2014 is filed by the assistant Commissioner of income tax 12 (2) (1), Mumbai (the learned assessing officer and cross objection number 101/M/2016 is filed by the official liquidator of Etisalat DB Telecom private limited (in liquidation) [ The OL] for assessment year 2007 – 08. 02. ITA number 3619/M/2015 is filed by the learned assessing officer for assessment year 2009 – 10 and the OL has filed cross objection number 107/M/2015 for that year. 03. ITA number 3715/M/2016 is filed by the deputy Commissioner of income tax – 12 (2) (1), Mumbai and ITA number 3238/M/2016 is filed by Etisalat DB Telecom private limited (in liquidation), Mumbai for assessment year 2010 – 11. 04. On/13 March 2023 the bench directed both the parties to produce the statement of assets and liabilities of the liquidator to demonstrate whether the tax liability is involved in these appeals are part of the dues payable as per the waterfall or not. 05. On 25 April 2023 the submission of the assets and liabilities of the company in liquidation was submitted it was stated that the claim received against the company was 7813.72 crores and amount admitted as a liability was 5367 crores. Further against the admitted claims the assets and funds available are approximately 758 crores. It was further confirmed by the liquidator that there are no income tax dues included under the aforesaid claim of the income tax Page | 3 ITA No.3715/Mum/2016 M/s Etisalat DB Telecom Private Limited; A.Y. 10-11 department. This is so because the income tax Department has not submitted any proof of that before the honourable High Court. On that date the coordinate bench asked the AO to confirm the above fact and counsel was also asked to give further clarification on this issue. 06. On 19 July 2023 when the matter was called up, there was no clarification from the revenue about the outstanding claim of the income tax department. It was also not submitted that whether any claim has been made against the above company. 07. As, the learned assessing officer could not show that there is any outstanding demand recoverable from the above company, the appeal is filed by the official liquidator becomes infructuous, for the reason that there could not be any recovery against the company. However, we hasten to state that such amount can be recovered from the directors in accordance with the provisions of section 179 of the act in case of a private limited company. Before us the appeal is preferred by the official liquidator, who is not aggrieved now, as there is no recovery of tax at present from the official liquidator. 08. In view of above facts cross objection number 101/M/2016 for assessment year 2007 – 08, cross objection number 107/M/2015 for assessment year 2009 – 10 and ITA number 3238/M/2016 for assessment year 2010 – 11 are infructuous and hence dismissed. 09. ITA number 7514/M/2014 for assessment year 2007 – 08, ITA number 3715M 2016 for assessment year 2010 – 11 and ITA number 3619/M/2015 for assessment year 2009 – 10 is filed by the learned assessing officer. The learned assessing officer has filed revised form number 36 wherein the official liquidator of Etisalat DB Telecom private limited (company in liquidation) has been made respondent. However as the learned assessing officer has not shown that the income tax department has raised claim before the honourable High Court in the asset and liability statement of the liquidator that certain tax demand payable by the assessee company, the appeal filed by Page | 4 ITA No.3715/Mum/2016 M/s Etisalat DB Telecom Private Limited; A.Y. 10-11 the official liquidator are also infructuous, therefore same are also dismissed. 010. However, we give liberty to file application for recall of this order to both the parties that in case if the tax demand of the income tax department raised on the assessee is admitted by any of the authorities or the courts, the above appeal of the assessee and learned assessing officer, as the case may be. 011. In the result, all three appeals filed by the learned assessing officer, one appeal filed by the assessee and to cross objections filed by the assessee are dismissed. Order pronounced in the open court on 31.07. 2023. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 31.07. 2023 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai
AI Insights
The case involves multiple appeals and cross objections related to the tax liabilities of Etisalat DB Telecom Private Limited for various assessment years. The appeals were filed by the Deputy Commissioner of Income Tax and the official liquidator of the company, which is under liquidation. The primary legal issue was whether there were any outstanding tax demands against the company that could be recovered, which would justify the continuation of the appeals. The court directed both parties to provide a statement of assets and liabilities to ascertain the company's financial obligations, including any tax dues. Upon review, it was found that there were no claims from the Income Tax Department included in the liquidator's financial statements, leading to the dismissal of all appeals and cross objections as infructuous.
