DCIT, New Delhi V. M/s EKL Appliances Ltd., New Delhi

ITA 3402/DEL/2012

AI Insights

The case involves two appeals filed by the DCIT, Circle-11(1), New Delhi against EKL Appliance Ltd. for the Assessment Years 2003-04 and 2004-05. These appeals were later transferred to Videocon Industries Ltd. following the amalgamation of EKL Appliance Ltd. with Videocon Industries Ltd. The appeals became infructuous due to the corporate insolvency resolution process undergone by Videocon Industries Ltd., where the approved resolution plan did not admit any liabilities towards the Income Tax Department. The court dismissed the appeals but allowed for a recall of the order if the tax liabilities are included in a future resolution plan.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136468 (ITAT-MUMBAI)
• Duration Of Justice: 10 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 02-04-2023
• Assessment Year: 2004-2005
• Appeal Filed On: 28-06-2012
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “E” BENCH, MUMBAI Before Shri Amit Shukla, Judicial Member and Shri Prashant Maharishi, Accountant Member ITA Nos. 2064 & 3402/Mum/2012 (Assessment Years: 2003-04 & 2004-05) DCIT, Circle -11(1) Room No. 312, C.R. Building New Delhi Vs. M/s. EKL Appliance Ltd. (Amalgamated with Videocon Industried Ltd.) A-22, Green Park, Aurobindo Marg New Delhi 110016 PAN – AAACE7192G Appellant Respondent Appellant by: None Respondent by: Shri Ankush Kapoor, CIT-DR Date of Hearing: 03.04.2023 Date of Pronouncement: 21.06.2023 O R D E R Per: Prashant Maharishi, JM 01. These are two appeals filed for Assessment Years (AY) 2003-04 and 2004-05 by the DCIT, Circle-11(1), New Delhi (learned AO) against EKL Appliance Ltd. 02. The learned D.R. submitted the revised Form Nos. 36 in the above two appeals stating that these appeals have now been transferred to Mumbai. The revised Form Nos. 36 are filed in the name of M/s. Videocon Industries Ltd. being successor of EKL Appliance Ltd. for the reason that EKL Appliance Ltd. was amalgamated with Videocon Industries Ltd. 03. The fact shows that EKL Ltd. was amalgamated with Videocon Industries Ltd. w.e.f. 01.01.2005 as per the order of the Hon’ble ITA Nos. 2064 & 3402/Mum/2012 M/s. EKL Appliance Ltd. 2 Bombay High Court dated 30 th June, 2006 and therefore the above revised memorandum of appeal was filed by the Revenue. 04. Now we find that Videocon Industries Ltd. has also undergone a consolidated corporate insolvency process pursuant to the order of the National Company Law Tribunal under section 31 of the IBC, 2016. Further as per the resolution plan submitted by the Twinstar Technology Ltd. has been approved. Therefore now the revised Form Nos. 36 also has become redundant. In the approved resolution plan there is no liability admitted with respect to the Income Tax Department. Accordingly the appeals filed by the learned AO have become infructuous. 05. If the learned AO still proposes to contest these appeals, he must establish that the liability arising out of these two appeals are covered in the insolvency resolution plan. As per the order dated 08.06.2021 we did not find that the Income Tax dues in these appeals has at all been considered either the unsecured financial creditors or operational creditors. 06. In view of the above, the appeals of the Revenue become infructuous and therefore the same are dismissed. However, we give liberty to the learned AO that in case latter on if NCLAT or NCLT admits the liabilityof tax dues involved in these appeals in the successful resolution plan of Twinstar Technologies Ltd., the application for recall of this order may be made which would be based on respective orders. 07. In the result, the appeals filed by the learned AO are dismissed. Order pronounced in the open Court on 21 st June, 2023. Sd/- Sd/- (Amit Shukla) (Prashant Maharishi) Judicial Member Accountant Member Mumbai, Dated: 21 st June, 2023 ITA Nos. 2064 & 3402/Mum/2012 M/s. EKL Appliance Ltd. 3 Copy to: 1. The Appellant 2. The Respondent 3. The CIT - concerned 4. The DR, “E” Bench, ITAT, Mumbai 5. Guard File By Order //True Copy// Assistant Registrar ITAT, Mumbai n.p.