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Facts
The assessee company, incorporated in Singapore, is in voluntary liquidation. These appeals were previously disposed of, then recalled. The liquidator was to resubmit Form 36, which was done, but lacked proper verification. The appeals were re-fixed for hearing, but the liquidator sought an adjournment due to pending approval from the creditors' committee for appointing a counsel.
Held
The Tribunal found that despite multiple opportunities and the appeals being recalled, the liquidator had not finalized a counsel to argue the matter, nor provided clarity on when proceedings could resume. The Tribunal also noted the lack of information regarding the department's claimed liability and its status as a payable liability by the liquidator.
Key Issues
Whether the appeals should be dismissed due to the prolonged delay and lack of progress in appointing a counsel by the liquidator, given the assessee's liquidation status.
Sections Cited
Section 143(3), Section 144C(13), Section 180 of the Insolvency, Restructuring and Dissolution Act, 2018 of Singapore
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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI
Before: SHRI PRASHANT MAHARISHI, AM & SHRI RAJ KUMAR CHAUHAN, JM
is filed by assessee for A.Y. 2018-19, against the assessment order passed by the Asst. Commissioner of Income Tax, International Taxation, Circle 3(1)(2), Mumbai, dated 21st March, 2022.
A.Y. 2015-16, 02. against the assessment order passed by Dy. Commissioner of income Tax, International Taxation, 3(1), Mumbai, dated 29th April, 2021, These appeals were earlier disposed off by the co-ordinate Bench 03. holding that Assessee Company is incorporated in Singapore and is currently in liquidation because of creditors’ voluntary winding up in pursuance to Section 180 of the Insolvency, Restructuring and Dissolution Act, 2018 of Singapore.
Form no.36 was required to be resubmitted duly singed by the liquidator. As such form no.36 duly signed by the liquidator was submitted; the co-ordinate Bench recalled the order. Registry was directed to issue notice to the liquidator by email mentioned in form no.36. Pursuant to that these appeals were re-fixed for hearing.
Today, when these appeals were called for hearing, a letter dated 05. 23rd April, 2024, was submitted by liquidator, wherein he states that the liquidator has submitted a proposal to the committee of creditors for appointing a counsel to argue the matter before the Tribunal. Such approval is awaited and therefore, he is seeking an adjournment.
We find that these appeals were recalled. Form no.36 is filed by the 06. liquidator on 23rd October, 2023. Still after the six months there is no finalization even about the counsel, who will appear. It is also clear that assessee is in voluntary liquidation.
In view of the above facts, it is not possible for us to wait 07. indefinitely and keep these appeals pending. Earlier also these appeals were disposed off as form no.36 were not verified by the liquidator. Even after six months, still counsel is not finalized. It is However, we give liberty to the liquidator that if within a reasonable 08. time, it is found that assessee wants to contest this appeal, he may file necessary application for recall of this orders.
In the result, both the appeals are dismissed. 09.
Order pronounced in the open court on 26.04.2024.