INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LTD, MUMBAI V. ADDL.JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX-14(2)(1), MUMBAI.

MA 247/MUM/2023

AI Insights

M/s. Infrastructure Leasing and Financial Services Ltd. filed a miscellaneous application seeking to rectify a mistake in the Tribunal's earlier order dated 20.10.2022, which had dismissed their appeal as non-maintainable due to an alleged initiation of the resolution process against them. The appellant argued that the resolution process was under sections 241/242 of the Companies Act, 2013, and not under the Insolvency and Bankruptcy Code (I&B Code), 2016. They provided evidence from the Hon'ble National Company Law Tribunal (NCLT) that no corporate insolvency resolution process had been initiated against them or their group companies. The Department of Revenue supported the original dismissal. However, the Tribunal found that the initial dismissal was based on incorrect facts regarding the initiation of the Corporate Insolvency Resolution Process, leading to the recall of the order and the re-listing of the appeal for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301273 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 15-06-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 19-03-2023
• Other Referred Cases: MA No.1173/2018 in C.P. No.3638(MB)/2018
• Laws Referred To: Companies Act, 2013, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIRANJAN GOVINDEKAR
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “K”, MUMBAI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER MA No.247/M/2023 (Arising out of ITA No.1554/M/2021) Assessment Year: 2016-17 M/s. Infrastructure Leasing and Financial Services Ltd., The IL & FS Financial Centre, Plot C-22, G Block, Bandra Kurla Complex, Bandra East, Mumbai – 400 051 PAN: AAACI0989F Vs. Addl. Joint/Deputy/Assistant Commissioner of Income Tax-14(2)(1), Room No.432, 4 th Floor, Aayakar Bhavan, Maharishi Karve Road, Mumbai – 400 020 (Appellant) (Respondent) Present for: Assessee by : Shri Niranjan Govindekar, A.R &Shri Bhupal Rapelli, A.R. Revenue by : Shri Manish Ajudia, D.R. Date of Hearing : 16 . 06 . 2023 Date of Pronouncement : 03 . 11 . 2023 O R D E R Per : Kuldip Singh, Judicial Member: Heard : Applicant M/s. Infrastructure Leasing and Financial Services Ltd. (hereinafter referred to as the appellant/assessee) by moving a miscellaneous application sought to rectify the mistake apparent on record by recalling the order dated 20.10.2022 passed by the Tribunal in ITA No.1554/M/2021for A.Y. 2016-17 on the grounds inter-alia that the Tribunal has dismissed the appeal of the MA No.247/M/2023 (Arising out of ITA No.1554/M/2021) M/s. Infrastructure Leasing and Financial Services Ltd. 2 appellant/assessee on the ground that since the resolution process has already been initiated against the applicant and its group companies the appeal filed in the present format is not maintainable; that in fact the resolution process is being carried out under section 241/242 of the Companies Act, 2013 and there is no such application for corporate insolvency resolution process which has been made or admitted by the adjudicating authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code (I&B Code), 2016; that Hon’ble National Company Law Tribunal (NCLT) in its order dated 12.10.2018 in MA No.1173/2018 in C.P. No.3638(MB)/2018 has categorically accepted that no petition under any of the provision of the I&B Code can be preferred by any party for initiation of ‘Corporate Insolvency Resolution Process’ against the appellant/assessee and its 348 group companies till the Central Government issues appropriate notification with regard to one or other making the provisions applicable to them; that in view of the directions of Hon’ble NCLT/ Hon’ble National Company Law Appellate Tribunal (NCLAT) that New Board was duly empowered to conduct business as per Memorandum of Association (MOA) and Articles of Association (AOA) of the company and provisions of the Companies Act, 2013, hence the appeal memo in form 36 filed on 07.09.2021 for A.Y. 2016-17 was duly verified by Shri C.S. Rajan, Managing Director of the appellant/assessee company. 2. However, on the other hand, the Ld. D.R. for the Revenue/respondent relied on the order (supra) passed by the Bench. MA No.247/M/2023 (Arising out of ITA No.1554/M/2021) M/s. Infrastructure Leasing and Financial Services Ltd. 3 3. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 4. In the face of the facts brought on record by the appellant/assessee discussed in the preceding paras, we find a mistake apparent on record that “Corporate Insolvency Resolution Process against the appellant/assessee has been initiated” which fact is not correct in view of the order dated 12.10.2018 passed by the Hon’ble NCLT in MA No.1173/2018 in C.P. No.3638(MB)/2018. Since the appellant/assessee company is duly conducting its business as per MOA/AOA and form 36 has been duly verified by Shri C.S. Rajan, Managing Director of the appellant/assessee company in proper form, the order (supra) passed by the Bench dismissing the appeal filed by the assessee being not maintainable, is hereby recalled. 5. In view of what has been discussed above, the appeal bearing ITA No.1554/M/2021 for A.Y. 2016-17 is ordered to be registered at its original number to be listed afresh for hearing by the registry in due course. Order pronounced in the open court on 03.11.2023. Sd/- Sd/- (GAGAN GOYAL) (KULIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 03.11.2023. * Kishore, Sr. P.S. MA No.247/M/2023 (Arising out of ITA No.1554/M/2021) M/s. Infrastructure Leasing and Financial Services Ltd. 4 Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.