ITAT dismisses Appeal in view the Appointment of Interim Resolution Professional and terms u/s 17 of IBC with granting IRP liberty to file Necessary Application [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) held that the powers of the Board of Directors shall stand suspended and the management of the affairs shall vest with the Interim Resolution Professional (IRP) and the officers and the managers of the Corporate Debtor shall report to the Interim Resolution Professional.

An assessment order came to be passed against the assessee company on 29/09/2021 by computing the income of the assessee at Rs. 15,03,92,501/-. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A)/NFAC and the CIT(A) vide order dated 08/07/2022 partly allowed the Appeal by confirming some of the additions made by the A.O.

Aggrieved by the order of the CIT(A), the assessee company represented by its ‘ex-Director’ filed the present Appeal. When the matter was taken up for hearing, the Assessee's Representative it to notice regarding passing of order dated 30/03/2023 by National Company Law Tribunal, Chandigarh Bench (NCLT) and submitted that Interim Resolution Professional has been appointed by the NCLT and moratorium in terms of Section 14(1) of the Insolvency and Bankruptcy Code 2016 has been declared.

After hearing both the parties, the tribunal noted that one Mr. Prashant Gupta has been appointed as Interim Resolution Professional. From the date of appointment of the Interim Resolution Professional, the powers of the Board of Directors shall stand suspended and the management of the affairs shall vest with the Interim Resolution Professional and the officers and the managers of the Corporate Debtor shall report to the Interim Resolution Professional.

Who shall be enjoined to exercise all the powers as are vested with Interim Resolution Professional and strictly perform all the duties as are enjoined on the Interim Resolution Professional under Section 18 and other relevant provisions of the Code, including taking control and custody of the assets over which the Corporate Debtor has ownership rights recorded in the balance sheet of the Corporate Debtor etc. as provided in Section 18(1)(f) of the Code, the tribunal added.

The two member bench consisting of Shamim Yahaya (Accountant Member) and Yogesh Kumar US (Judicial Member) held that Appeal filed by the suspended/Ex-Director is not maintainable. Accordingly, a liberty to the Interim Resolution Professional was granted to file necessary Application or Appeal in accordance with law if he deems fit to do so. Thus the appeal was dismissed.

To Read the full text of the Order CLICK HERE

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