K - LIFESTYLE & INDUSTRIES LTD,MUMBAI vs. DCIT CC 5(3), MUMBAI

PDF · subscribers
ITA 6311/MUM/2018Status: DisposedITAT Mumbai20 July 2022AY 2012-133 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 no proceedings can remain pending with any Court or Tribunal once Insolvency Resolution Proceedings have been initiated. Since the Interim Resolution Professional had not impleaded themselves, the appeal was not maintainable.

What were the facts?

The assessee's appeal arose from a penalty order under Section 271(1)(c). The assessee company was undergoing Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016.

What were the issues?

The primary issue was the maintainability of the appeal before the ITAT in light of the ongoing Insolvency Resolution Process of the assessee company.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘H‘ BENCH

For Respondent: Shri K.C. Kanojiya
Hearing: 20/07/2022Pronounced: 20/07/2022

BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER (Assessment Year :2012-13) M/s. K-Life Style Industries Ltd., Vs. DCIT, Central Circle-5(3) 11/12, Raghuvanshi Mill Air India Building, 19th Floor, Compound, Lower Parel, Mumbai – 400 013 Room No.1906, Nariman Point, Mumbai – 400 021 PAN/GIR No.AABCS1364B (Appellant) .. (Respondent) Assessee by None Revenue by Shri K.C. Kanojiya Date of Hearing 20/07/2022 Date of Pronouncement 20/07/2022 आदेश / O R D E R PER M. BALAGANESH (A.M):

This appeal in A.Y.2012-13 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-53, Mumbai in appeal No.CIT(A)-53/IT-19/DCCC-5(3)/2018-19 dated 23/08/2018 (ld. CIT(A) in short) in the matter of imposition of penalty u/s.271(1)(c) of the Act (hereinafter referred to as ‘Act’).

2.

None appeared on behalf of the assessee. At the outset, we find that assessee’s case has been referred to Hon’ble National Company Law Tribunal (NCLT) for Insolvency Resolution Process and an Interim Resolution Professional (IRP) has been appointed in the assessee company. The Form No.36 available in our record is the one signed by the M/s. K-Life Style Industries Ltd., 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. The Interim Resolution Professional (IRP) Mr. Ajit Kumar has been appointed in the instant case and the IRP has not impleaded himself before this Tribunal by filing form No.36. Hence, the present appeals in the present format are not maintainable and hence, liable to be dismissed.

4.

In view of the above, we deem it fit and appropriate to dismiss this appeal of the assessee as not maintainable with a liberty given to IRP to prefer Miscellaneous Application, if so desired, after the completion of Insolvency Resolution Process, in which event, this appeal shall be restored.

5.

In the result, appeal of the assessee is dismissed as not maintainable. Order pronounced in open Court on 20/07/2022

Sd/- Sd/- (RAHUL CHAUDHARY) (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 20/07/2022 KARUNA, sr.ps

M/s. K-Life Style Industries Ltd.,

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →