AI Insights
The case involves multiple appeals filed by Jyoti Structures Limited for various assessment years against the orders of the Income Tax Department. The company had undergone insolvency resolution, and a new board took over, rendering the previous management, including the erstwhile Managing Director, functus officio. The appeals were dismissed on the grounds that the current management was not authorized to contest them, and it was unclear if the income tax dues were included in the corporate resolution plan. The court provided an option for the new management to reinstate the appeals if necessary.
Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 299763 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 year(s) 7 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-02-2023
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
K
Next Hearing Date
13-02-2023
Assessment Year
2010-2011
Appeal Filed On
11-07-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI RAHUL CHAUDHARY, JM ITA No. 1467, 1468, 2135, 4720, 4721/MUM/2016 (Assessment Year 2010-11, 2011-12, 2012-13) ITA No. 7019/MUM/2017 (Assessment Year 2013-14) J yoti S tr uct ur es Lt d Valec ha C ham bers, 6 th Fl oor, N ew Li nk R d, Os hi war a, Andher i (W )-400 053 Vs. DCIT CC 7(2) R.No. 655, 6 th Floor, Aayakar Bhavan, M.K.Road, Mumbai-400 020 (Appellant) (Respondent) PAN No. AAACJ2499R ITA No. 1239/MUM/2021 (Assessment Year 2016-17) J yoti S tr uct ur es Lt d Valec ha C ham bers, 6 th Fl oor, N ew Li nk R d, Os hi war a, Andher i (W )-400 053 Vs. National Faceless Assessment Centre Aayakar Bhavan, M.K. Road, Mumbai-400 020 (Appellant) (Respondent) PAN No. AAACL2499R Assessee by : Utkarsh Sharma CA/ Ms. Shalini Agarwal/Ms. Midhat Khan Revenue by : Ms. Samruddhi Hande, Sr.AR Date of hearing: 14.02.2023 Date of pronouncement : 16.02.2023 O R D E R PER BENCH 01. These appeals are filed by Jyoti Structures Limited, Mumbai for A.Y. 2010-11 to A.Y. 2016-17 being bunch of Page | 2 ITA No.1467, 1468, 2135, 4720, 4721/MUM/2016 ITA No. 7019/MUM/2017 & 1239/MUM/2021 Jyoti Structures Ltd,A.Y.2010-11, 2011-12, 2012-13, 2013-14, 2016-17 7 appeals. At the time of hearing the ld. AR appearing on behalf of the assessee submitted that above company has come out of the IBC 2016 proceedings on the basis of resolution plan submitted by Mr. Sharad Sanghi approved by committee of creditors and National Company Law Tribunal order dated 27.03.2019. The new board has taken over. It was also submitted that in the resolution plan there are no dues of the Income Tax Department payable by the assessee. It was further stated that Mr. Vandana Garg, the original IRP has also now not holding any post. 02. The ld. DR submitted that these appeals are filed by the erstwhile Managing Director Mr. K R Thakur who is now functus officio as the Board of Directors existing erstwhile are not capable of contesting these appeals. Therefore, these appeals are not maintainable. 03. We have carefully considered the rival contentions and find that this company has undergone insolvency resolution and one Mr. Sharad Sanghi has submitted plan which was approved by the committee of creditors and the order of NCLT dated 27.03.2019. It is not ascertainable whether dues of Income Tax Department are part of resolution plan or not. The appeal is also filed by the erstwhile Managing Director who is no more authorized to contest the appeal. The present appeal is required to be reinstated, if at all the outstanding due of the Income Tax Department are part of corporate insolvency resolution plan. It is also not ascertainable that whether these Page | 3 ITA No.1467, 1468, 2135, 4720, 4721/MUM/2016 ITA No. 7019/MUM/2017 & 1239/MUM/2021 Jyoti Structures Ltd,A.Y.2010-11, 2011-12, 2012-13, 2013-14, 2016-17 appeals are required to be contested at all. As these appeals are signed by the Managing Directors of erstwhile Board of Directors, who is not authorized to contest this appeal now, therefore, these appeals are not maintainable. 04. Accordingly, we dismissed all these 7 appeals as not maintainable. However, if the new management is of the opinion that dues of Income Tax Department are part of resolution plan and these appeals are required to be contested, liberty is given to reinstate these appeals duly signed by the person authorized to sign the return of income u/s. 140 of the Act. Appeals of the assessee would be reinstated from the date revised form number 36 are filed. The assessee is given liberty to file these appeals within 90 days from the date of these orders. In such circumstances, on application of the assessee, this order would be recalled. 05. Accordingly, all theses 7 appeals are dismissed as not maintainable. Order pronounced in the open court on 16.02.2023. Sd/- Sd/- (RAHUL CHAUDHARY) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated:16.02.2023 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. Page | 4 ITA No.1467, 1468, 2135, 4720, 4721/MUM/2016 ITA No. 7019/MUM/2017 & 1239/MUM/2021 Jyoti Structures Ltd,A.Y.2010-11, 2011-12, 2012-13, 2013-14, 2016-17 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai
