What did the Tribunal hold?

The Tribunal noted that the NCLT had ordered the liquidation and dissolution of the corporate debtor. In light of this order, the Tribunal found the assessee's appeal to be infructuous.

The assessee's appeal was filed against an order of the CIT(A). During the hearing, the assessee submitted that the appeal had become infructuous due to an order passed by the National Company Law Tribunal (NCLT). The NCLT had ordered the liquidation and dissolution of the corporate debtor.

What were the issues?

Whether an appeal before the ITAT becomes infructuous if the corporate debtor is ordered to be liquidated and dissolved by the NCLT.

Sathya Sai Cold Storage P Ltd vs ITO | ITAT Chennai 2021

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI V. DURGA RAO & SHRI G. MANJUNATHA

Hearing: 19.07.2021Pronounced: 22.07.2021

आदेश / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER:

This appeal filed by the assessee is against the order of the learned Commissioner of Income Tax, (Appeals)-15, Chennai in dated 28.11.2018 relevant to the Assessment Year 2012 - 2013. 2. When this appeal was taken up for hearing, the learned Counsel for the Assessee has submitted that in view of the order passed by the 2 -: National Company Law Tribunal, Chennai by order dated 24th July, 2019, this appeal has become infructuous.

The learned Departmental Representative has not raised any objection.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. The National Company Law Tribunal, Chennai has passed the following order vide order No.MA/666/2019 in CP/850/IB/2018 filed under Section 33(1)(a) of the Insolvency and Bankruptcy Code 2016 in the matter of M/s. Sathya Sayee Cold Storage Private Limited, represented by RP viz. Rajashree Santhanam. The relevant portion of the order is extracted as under: “7. It is stated that, the CoC in its 4th Meeting held on 30th April, 2019, made deliberations with respect to i) Heavy loss incurred by the Company due to the natural calamity i.e. Vardha Puyal and its inability to recover dues from its Directors; (ii) Discontinued business operations for more than two years; (c) Non-interest shown by any Resolution Applicant; and d) non- owning of any assets except bank balance of Rs.6,127/- (Rupees Six Thousand One Hundred and Twenty Seven Only) and has decided to liquidate the Corporate Debtor. The operative part of the Resolution passed by the CoC reads as follows: “Considering the above factors, the Committee of Creditors UNANIMOUSLY RESOLVED TO LIQUIDATE the Company and file an application before the Hon’ble NCLT Chennai praying for passing an order of liquidation as per Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 and to appoint a Liquidator.”

3 -: 8. In view of the above and the other details such as no assets standing in the name of the Corporate Debtor, this Authority in exercise of the powers conferred under Sub-section (2) of Section 54 of the I&B Code, 2016, hereby orders the dissolution of the Corporate Debtor, viz. M/s. Sathya Sayee Cold Storage Private Limited from the date of this Order, and the Corporate Debtor stands dissolved. Consequently, the Resolution Professional stands relived. However, the bank balance amounting to Rs.6,217/- is allowed to be withdrawn by the RP for adjustment against CIRP cost.”

In view of the above, the appeal filed by the Assessee is dismissed as infructuous.

In the result, the appeal of the Assessee in stands dismissed. Order pronounced on 22nd July, 2021 in Chennai.

SATHYA SAI COLD STORAGE P LTD,CHENNAI vs. ITO, CORP WARD 6(1), CHENNAI

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