2025 (1) TMI 803 - AT - Income Tax

Assessment passed u/s 143(3) against company dissolved - HELD THAT - As noted that the resolution plan did not make any provision towards any statutory dues payable by the assessee. The assessee s counsel before the Hon ble High Court had stated that the revenue herein had not lodged its claim towards statutory dues before the Resolution Professional (RP). The Hon ble High Court 2023 (9) TMI 1163 - DELHI HIGH COURT in noticed that the Corporate Insolvency Resolution Process (CIRP) in case of the assessee commenced on 19.03.2017. The Hon ble High Court noted that out of the total amount available for distribution, no amounts were ear marked for payment of statutory dues by NCLT in its order dated 4.2.2020 in view of the fact that the revenue had not lodged any claims before the RP. Though this High Court order was passed for the Asst Year 2008-09, still the fact that the revenue had not lodged any claim before the RP holds good for the year under consideration also. We deem it fit and appropriate to dismiss the appeal of the revenue as no purpose would be served by keeping this appeal pending before this tribunal and even if the revenue succeeds before this tribunal, still it could not recover any dues from the assessee company in view of the fact, that it had failed to implead itself by lodging its claim before the RP and no monies were allocated for distribution towards any statutory dues in the order passed by the NCLT dated 4.2.2020. Accordingly, the grounds raised by the revenue are dismissed. Appeal of the revenue is dismissed.

Summary

The appeal in ITA No.3538/Del/2016 for the Assessment Year 2011-12 was dismissed by the ITAT Delhi. The appeal arose from an order by the Commissioner of Income Tax (Appeals)-17, New Delhi, against an assessment order under Section 143(3) of the Income-tax Act, 1961. The Tribunal noted a decision from the Hon'ble Jurisdictional High Court in the assessee's own case, which highlighted that during the Corporate Insolvency Resolution Process (CIRP), initiated on 19.03.2017, the revenue did not lodge its claim for statutory dues before the Resolution Professional (RP). Consequently, the National Company Law Tribunal (NCLT) did not allocate funds for statutory dues in its resolution plan approved on 04.02.2020. The High Court adopted a "clean slate" approach, indicating that appeals concerning periods prior to the resolution plan's approval, where no provisions for statutory dues were made, serve no purpose. Applying this rationale, the Tribunal dismissed the revenue's appeal, as any successful outcome would not result in recovery due to the absence of a lodged claim and allocated funds. The grounds raised by the revenue were dismissed, and the appeal was formally closed on 30/08/2024.