The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held that the income tax appeal is not maintainable once Insolvency Resolution proceedings are initiated against a Corporate Debtor under the Insolvency and Bankruptcy Code (IBC).
The assessee, Twinkle Enviro Tech’s case has been referred to National Company Law Tribunal (NCLT) for Insolvency Resolution Process and an Interim Resolution Professional (IRP) has been appointed in the assessee company. as per the NCLT order, the proceedings under Insolvency and Bankruptcy Code (IBC) have already been initiated and moratorium has been declared for prohibiting all the proceedings against the corporate debtor including execution of any judgement, decree or order in any Court of law, Tribunal, Arbitration Panel or other authority.
A bench of Shri M.Balaganesh, Accountant Member & Shri Rahul Chaudhary, Judicial Member dismissed the appeal on ground of maintainability and observed that “the present appeals in the present format are not maintainable, being not filed by Mr. Devendra Jain, Interim Resolution Professional who is empowered to file appeal only on approval of the committee of the creditors. Hence, both the appeals (the assessee as well as the Revenue) are liable to be dismissed being not maintainable at this stage. We find that the ld. IRP had not impleaded himself in the instant case before us by filing a revised Form No.36. The Form No.36 available in our record is the one signed by the erstwhile Director of the assessee company. As per Section 14 of the Insolvency and Bankruptcy Code, 2016, no proceedings shall remain pending with any Court or Tribunal, once the Insolvency Resolution Proceedings had been initiated on a Corporate Debtor. It is not in dispute that the assessee company is a Corporate Debtor. Similarly, the Revenue has also not filed Revised Form No.36 by impleading the IRP in the instant case.”
Comments