KARUTURI GLOBAL LIMITED,BANGALORE V. ASST.C.I,.T., BANGALORE

ITA 929/BANG/2014

AI Insights

The case involves multiple appeals by Karuturi Global Ltd. and the Deputy Commissioner of Income Tax (DCIT) concerning various assessment years. The appeals were related to disputes over income tax assessments and were heard by the Income Tax Appellate Tribunal in Bangalore. During the proceedings, it was revealed that Karuturi Global Ltd. was undergoing a Corporate Insolvency Resolution Process (CIRP) and had been liquidated, with a liquidator appointed to manage the sale of its assets. The liquidator's failure to properly substitute the signing of the appeals and the lack of locus standi of the company's directors post-liquidation led to the dismissal of the assessee's appeals. The Revenue's appeals were dismissed as they became infructuous due to the ongoing liquidation process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669518 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: VANAJA
• Keywords: Condonation of delay; Liquidation
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI SOUNDARARAJAN K , JUDICIAL MEMBER Appeal No. Assessment Year ITA No. 1216/Bang/2017 2008-09 IT(TP)A No.929/Bang/2014 2008-09 IT(TP)A No.123/Bang/2014 2009-10 IT(TP)A No.472/Bang/2015 2010-11 IT(TP)A No.104/Bang/2016 2011-12 IT(TP)A No.2827/Bang/2018 2014-15 KARUTURI GLOBAL LTD., Mr. P R Raman Company Liquidator C/o A C Suresh No 3 DC- 118, Ground Floor, 3rd D Cross Road, 2nd Main Road, Kasturi Nagar Bangalore 560043 Company Address :- No.204, Embassy Centre, 11, Crescent Road, Bangalore – 560 001. PAN: AAACK 8275A Vs. The Deputy / Assistant Commissioner of Income Tax, Circle 11(5)/ Circle 4(1)(1), Bangalore. APPELLANT RESPONDENT Appeal No. Assessment Year IT(TP)A No.1057/Bang/2014 2008-09 IT(TP)A No.244/Bang/2014 2009-10 IT(TP)A No.515/Bang/2015 2010-11 The Deputy Commissioner of Income Tax, Circle 11(5)/ Circle 4(1)(1), Bangalore. Vs. KARUTURI GLOBAL LTD., Bangalore – 560 001. PAN: AAACK 8275A APPELLANT RESPONDENT IT(TP)A No.929/Bang/2014 & Ors. Page 2 of 5 Assessee by : Smt. Vanaja, Advocate Revenue by : Smt. Suganthamala T M, CIT(DR)(ITAT), Bengaluru. Date of hearing : 19.06.2025 Date of Pronouncement : 24.06.2025 O R D E R Per Bench 1. These are cross appeals filed by KARUTURI GLOBAL LTD. (the assessee) and DCIT/ACIT, Circle 1(5) / 4(1)(1), Bangalore [ld. AO] for several assessment years as under:- (a) IT(TP)A No.929/Bang/2014 is filed by Karuturi Global Ltd. (assessee/appellant) for AY 2008-09 against the appellate order passed by CIT(Appeals)-I, Bangalore dated 8.3.2014 signed by MD of the company, K.S. Ramakrishna. (b) ITA No.1216/Bang/2017 is also filed by the assessee for the AY 2008-09 against the appellate order passed by the CIT(Appeals)-4, Bangalore on 21.02.2017 signed by Sai Ramakrishna Karuturi. (c) IT(TP)A No.123/Bang/2014 is filed by assessee for AY 2009-10 against the assessment order passed u/s. 143(3) r.w.s. 144C(5) of the Act dated 31.1.2014 passed by the DCIT, Circle 1(5), Bangalore and Form 36 is present by Anita Karuturi, Director. (d) IT(TP)A No.472/Bang/2015 is filed by assessee against the assessment order passed u/s. 143(3) r.w.s. 144C of the Act dated 29.1.2015 by the IT(TP)A No.929/Bang/2014 & Ors. Page 3 of 5 DCIT, Circle 4(1)(1), Bangalore and Form 36 is signed by K.S. Ramakrishna, Director, MD of the assessee company. (e) IT(TP)A No.104/Bang/2016 is filed by the assessee against the assessment order u/s. 143(3) r.w.s. 144C of the Act dated 31.12.2015 by the DCIT, Circle 4(1)(1), Bangalore and presented by K.S. Ramakrishna, Director, MD of the assessee company. (f) IT(TP)A No.2827/Bang/2018 is filed for AY 2014-15 presented by Sai Ramakrishna Karuturi, MD against the assessment order u/s. 143(3) r.w.s. 144C r.w.s. 92CA of the Act dated 10.8.2018 by the DCIT, Circle 4(1)(1), Bangalore. 2. During the course of hearing, it has come to the notice that NCLT initiated Corporate Insolvency Resolution Process against this company on 2.8.2019 which led to its liquidation. One Mr. P R Raman is appointed as the Liquidator. Assets of this company are being sold through auction. Liquidator is representing the company for liquidation matters as well as before NCLT. However, the present appeals directed before us are signed by some directors of the company. On appointment of liquidator, those directors do not have any locus standi to file and pursue these appeals. The Liquidator has though issued Letter of Authority in favour of the counsel, however, has not replaced Form 36 duly signed by him. This is not done despite liquidation process going on for almost 5 years. In view of this, these appeals filed by the assessee before us are dismissed as not properly verified and also not substituting the form no 36 duly signed and verified by the IT(TP)A No.929/Bang/2014 & Ors. Page 4 of 5 liquidator. Thus, the appeals filed by assessee are not maintainable and hence dismissed. 3. The Liquidator is granted liberty that if he wants to continue the above proceedings involved in these appeals, fresh Form 36 is required to be filed along with petition for condonation of delay that why it has not been done for such a long time. The coordinate Bench may take a decision at that time in accordance with law regarding recall of this order. 4. Thus, all these appeals filed by the assessee are dismissed. 5. The ld. AO has also filed appeals in these cases in IT(TP)A No.1057/Bang/2014 for AY 2008-09, IT(TP)A No.244/Bang/2014 for AY 2009-10 & IT(TP)A No.515/Bang/2015 for AY 2010-11. The company is already into liquidation, the assets of the company are being sold as per various notices and e-auction sale notices published by the Liquidator. Even if the Revenue succeeds in these appeals, there is no chance of any recovery of any tax out of the assets of the assessee company. Therefore, these appeals have become infructuous. Accordingly, the appeals filed by the ld. AO are also dismissed. 6. If the ld. AO wants to continue with these appeals, the ld. AO must show that the claim was made before the NCLT at the time of liquidation about this litigation and consequent demand, if any, arising out of these appeals. The Bench, if such application is made, may consider restoration of the appeals. IT(TP)A No.929/Bang/2014 & Ors. Page 5 of 5 7. In the result, all the appeals of the assessee as well as the Revenue are dismissed. Pronounced in the open court on this 224th day of June, 2025. Sd/- Sd/- ( SOUNDARARAJAN K ) ( PRASHANT MAHARISHI ) JUDICIAL MEMBER VICE PRESIDENT Bangalore, Dated, the 24th June 2025. /Desai S Murthy / Copy to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "