Modi Entertainment Ltd., New Delhi V. DCIT, Circle-5(1), New Delhi.

MA 292/DEL/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4332 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2002-2003
• Appeal Filed On: 18-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD SHARMA
• Keywords: Liquidation

Judgement Text

1 M.A NOS. 292/DEL/2016 & 439/DEL/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEMB ER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER M.A NO. 292/DEL/2019 IN (ITA NO. 4902/DEL/2005) (A.Y. 2002-03) M/S. MODI ENTERTAINMENT LTD. 49, COMMUNITY CENTRE, FRIENDS COLONY, NEW DELHI, (APPLICANT) VS DCIT CIRCLE 5(1) NEW DELHI. (RESPONDENT) M.A NO. 439/DEL/2015 IN (ITA NO. 102/DEL/2006) (A.Y. 2002-03) DCIT CIRCLE 5(1) NEW DELHI. (APPLICANT) VS M/S. MODI ENTERTAINMENT LTD. 49, COMMUNITY CENTRE, FRIENDS COLONY, NEW DELHI, (RESPONDENT) APPLICANT BY SH. DEEPESH JAIN, CA RESPONDENT BY SH. VINOD SHARMA, SR. D.R. ORDER PER SUCHITRA KAMBLE, JM THESE TWO MISCELLANEOUS APPLICATIONS ARE FIELD BY T HE ASSESSEE AS WELL AS BY THE REVENUE IN RESPECT OF ORDER DATED 25/2/2015 PASSED BY THE TRIBUNAL. DATE OF HEARING 27.08.2021 DATE OF PRONOUNCEMENT 05.10.2021 2 M.A NOS. 292/DEL/2016 & 439/DEL/2015 2. THE LD. AR SUBMITTED THAT THE ASSESSEE COMPANY P URSUANT TO CERTAIN DISPUTE WITH ONE OF THE CREDITORS WENT UNDER THE LI QUIDATION PROCEEDINGS AND VIDE THE HONBLE DELHI HIGH COURTS ORDER DATED 2/3 /2009, THE PROVISIONAL/OFFICIAL LIQUIDATOR WAS APPOINTED TO TA KE CHARGE OF THE AFFAIRS OF THE ASSESSEE COMPANY. SUBSEQUENTLY, HOWEVER, DUE TO AM ICABLE SETTLEMENT OF DISPUTE MADE BETWEEN THE PARTIES, ASSIGNING OF THE OFFICIAL LIQUIDATOR WAS WITHDRAWN BY THE HONBLE DELHI HIGH COURT VIDE ORDE R DATED 24/11/2012, THEREBY RE-INSISTING THE EX-MANAGEMENT OF THE COMPA NY. THE LD. AR FURTHER SUBMITTED THAT PURSUANT TO THE WITHDRAWAL OF THE AP POINTMENT OF THE OFFICIAL LIQUIDATOR THE APPLICANT/ASSESSEE FILED AFRESH POWE R OF ATTORNEY (VAKALATNAMA) SIGNED BY THE MANAGEMENT. AT THE TIME OF HEARING O N 25 TH FEBRUARY, 2015, BOTH THE SIDES ARGUED THE MATTER ON MERIT. THE LD. AR POINTED OUT THAT THE REINSTATEMENT OF MANAGEMENT AND THE COMPANIES STATE OF AFFAIRS WERE ALSO CLARIFIED BY THE ASSESSEE VIDE LETTER DATED 29/4/20 15 ON THE POINTED QUERY RAISED BY THE BENCH OF THE TRIBUNAL WHILE HEARING T HE APPEALS FOR ASSESSMENT YEARS 2001-02 AND 2004-05. THIS FACT IS ALSO MENTI ONED IN THE MISCELLANEOUS APPLICATION FIELD BY THE REVENUE U/S 254 (2) ON 5/1 1/2015. SINCE, THERE WERE NO LIQUIDATION PROCEEDINGS AT THE TIME OF HEARING O N 25/2/2015 AND THE MANAGEMENT WERE REINSTATED, THE APPEAL FILED BY THE ASSESSEE HAS TO BE DECIDED ON MERIT. THEREFORE, THE ORDER DATED 27/2/105 MAY BE RECALLED AND T HE APPEAL MAY BE HEARD ON MERIT. 3. THE LD. DR AGREED WITH THE CONTENTION OF THE LD. AR AND THE REVENUES MISCELLANEOUS APPLICATION IS ALSO ON THE SAME POINT /ARGUMENT. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT ON DATE OF HEA RING I.E. ON 25/2/2015, APPEALS WERE ARGUED ON MERIT BUT ORDER DATED 27/2/2 015 HAS PROCEEDED AND APPEALS WERE DISPOSED OFF ONLY ON GROUND OF NON-APP OINTMENT OF OFFICIAL LIQUIDATOR. THIS APPEARS TO BE A CLEAR MISTAKE APPARENT ON RECO RD, THEREFORE, WE ARE RECALLING ORDER DATED 27/2/2015 AS PER THE PROVISIO NS OF SECTION 254 OF THE INCOME 3 M.A NOS. 292/DEL/2016 & 439/DEL/2015 TAX ACT, 1961. THE MISCELLANEOUS APPLICATIONS FILE D BY THE ASSESSEE AS WELL AS BY THE REVENUE ARE ALLOWED AND THE ORDER DATED 27/2 /1015 IS RECALLED. THE APPEAL BEING ITA NO. 4902/DEL/2015 AND ITA NO. 102/ DEL/2006 BE PLACED FOR HEARING AFRESH ON 11/11/2021. WE HAVE INFORMED BOTH THE PARTIES IN OPEN COURT ABOUT THE NEXT DATE OF HEARING OF THE APPEAL. HENCE, NO SEPARATE NOTICE WILL BE ISSUED TO BOTH THE PARTIES AND THE PARTIES SHOULD REMAIN PRESENT AT THE TIME OF HEARING ON 11/11/2021. REGISTRY IS DIRECTE D TO PLACE THESE APPEALS FOR FRESH HEARING. THE MISCELLANEOUS APPLICATIONS ARE ALLOWED. 9. IN RESULT, BOTH THE MISCELLANEOUS APPLICATIONS A RE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 05 TH DAY OF OCTOBER, 2021 SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 05/10/2021 R. N. SR. PS * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI