ITAT dismisses Appeals on Failure of Resolution Professional to Amend Form No 36A [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench dismissed appeals as non-maintainable on failure of Resolution Professional to amend Form No: 36A.

In this instant case resolution process has been initiated against the assessee and the resolution professional has taken over affairs of the company from the old management of the company and therefore he was required to amend the Form No. 36A. But despite several opportunities so far the Form No. 36A i.e. the form prescribed for filing appeal before the ITAT, has not been amended by the assessee and Revenue in their respective appeals.

The Counsels for the Revenue, Vinay Sinha and Asif Karmali submitted that against the assessee company, M/s Housing Development & Infrastructure Ltd insolvency and bankruptcy proceedings under the Insolvency and Bankruptcy Code have been initiated and resolution professional has been appointed by the National Company Law Tribunal on the petition filed by the financial creditor.

The Resolution Professional plays a vital role in the Insolvency and Bankruptcy process. The Bankruptcy Law Reforms Committee (BLRC) in its final report also emphasized on the role of an RP which stated that “Insolvency professionals form a crucial pillar upon which rests the effective, timely functioning as well as credibility of the entire edifice of the insolvency and bankruptcy resolution process.”

The Resolution professional conducts the entire Corporate Insolvency Resolution Process and manages the operations of the corporate debtor during the period of the CIR Process. Further, even after the expiry of the period of CIR, the RP continues to manage the operation until the order of the approved resolution plan or appointment of the liquidator is passed. He is also vested with the exercise of power and to perform the duties that are vested with the Interim Resolution Professional. 

The Tribunal relied on the judgment in Orbit Corp Ltd., wherein it was held that the resolution professional was required to amend 36A for further prosecuting the appeal and in absence of which appeals were held to be non-maintainable.

The Bench consisting of Om Prakash Kant, Accountant Member and Sandeep Singh Karhail, Judicial Member held that “Accordingly the appeal is dismissed as non-maintainable at this stage. “

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates