KREUZ SUBSEA PTE LIMITED,MUMBAI vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, INT TAX CIRCLE 3(1)(2), MUMBAI

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ITA 1246/MUM/2022Status: DisposedITAT Mumbai26 April 2024AY 2018-19Bench: SHRI PRASHANT MAHARISHI (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 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 noted that despite the appeals being recalled and a period of six months having passed, the liquidator had not finalized the appointment of counsel nor provided any update on when proceedings would be conducted. Given the lack of progress and information from the liquidator, the Tribunal held that it was not possible to keep the appeals pending indefinitely.

What were the facts?

The appeals were filed by the assessee, Kreuz Subsea Pte Ltd., against assessment orders for AY 2018-19 and AY 2015-16. The assessee company was incorporated in Singapore and was in voluntary liquidation. The appeals had been previously disposed of and recalled. The liquidator sought an adjournment due to pending approval for appointing counsel.

What were the issues?

Whether the appeals should be dismissed due to the ongoing voluntary liquidation of the assessee and lack of progress in appointing a representative to argue the case.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 180

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SHRI RAJ KUMAR CHAUHAN, JM

For Appellant: Shri Anil Sant, DR
For Respondent: Shri Anil Sant, DR
Hearing: 25.04.2024
1.

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. , is filed by the assessee for 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.

4.

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.

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