METENERE LTD.,DELHI vs. ACIT, CENTRAL CIRCLE- 17, NEW DELHI

ITA 641/DEL/2019Status: DisposedITAT Delhi02 August 2022AY 2008-094 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was not maintainable because it was filed by the Directors of the company after the commencement of the corporate insolvency resolution process. Following a previous decision in the assessee's own case, the Tribunal dismissed the appeal.

What were the facts?

The assessee company, Metenere Ltd., filed an appeal against an order of the CIT(A). The assessee's counsel sought an adjournment due to the company being under corporate insolvency resolution process and a moratorium period in effect. The respondent opposed the adjournment, arguing the appeal was not maintainable as it was filed by the Directors.

What were the issues?

The key issue was the maintainability of an appeal filed by the Directors of a company undergoing corporate insolvency resolution, versus the locus standi of the Resolution Professional.

Which sections of the Income-tax Act were involved?

Section 14 IBC Code

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI N. K. BILLAIYA & SH. YOGESH KUMAR U.S.

For Respondent: Ms. Rinku Singh, CIT DR

Hearing: 25.07.2022Pronounced: 02.08.2022

ORDER PER YOGESH KUMAR U.S., JM

This appeal is filed by the assessee against the order dated 29/11/2018 passed by the CIT(A)-27, New Delhi for Assessment Year 2008-09.

The Ld. AR moved an adjournment application on the ground that, the assessee Company is under corporate insolvency resolution process and on account of resolution professional has been appointed the moratorium period is going on in terms of Section 14 of IBC Code and the next date of hearing is Schedule on 24/08/2022 before the NCLT.

The Ld. DR vehemently opposed the application for adjournment and submitted that, the present appeal has been field by the Directors of the Com- any which is not maintainable in view of appointment of resolution professional. Further brought to our notice regarding the order dated 11/11/2021 passed in to 646/Del/2019 in assessee’s won case for Assessment Year 2010-11 to 2014-15 wherein the Co-ordinate Bench has dismissed the Appeal with a liberty to the insolvency resolution professional to file the appeal if the committee of creditors desires to do so. Therefore, the Ld. DR submitted that the present appeal is also deserves to be dismissed.

We have heard the parties, perused the material on record and gave our thoughtful consideration. The Coordinate Bench of the Tribunal vide order dated 11/11/2021 in to 646/Del/2019 for Assessment Year 2010- 11 to 2014-15 in assessee’s own case, dismissed the Appeal on the ground that, those Appeals have been filed by the Directors of the Company. In view of appointment of Resolution Professional, held that those Appeals are not maintainable, accordingly, dismissed the Appeal. The relevant portion of the order of the Tribunal is held as under:-

“4. We have carefully considered the rival contentions. In the present cases, the insolvency process under IBC 2016 has commenced with effect from 25th September, 2020. As stated in the adjournment application still it is in progress. All these appeals have been found that those are filed by the Directors of the company. The moment IRP process starts in the case of a corporate debtor under IBC, 2016 the Directors do not have any locus standi. The Interim Resolution Professional is the only person, who can file the appeal and pursue the same. In these cases, all these appeals have been filed by the Directors and, therefore, these appeals are not maintainable. Therefore, we dismiss all these five appeals, but grant a liberty to the IRP to file these appeals, if the Committee of Creditors decides so. At that time, either he may file the fresh appeals with a request for condonation of delay or he may make an application for recall of this order.

In the result, all the five appeals are dismissed.”

By following the above order of the Tribunal, we are inclined to dismiss the Appeal of the assessee with a liberty to the Insolvency Resolution Professional to file the fresh appeal if advised or along with the application for condonation of the delay in filing the Appeal or Insolvency Resolution Professional may also make an application for recalling this order.

In the result, the Appeal filed by the assessee is dismissed.

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