The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) dismissed the appeal, affirming that no legal proceedings can be initiated during the resolution process against the Corporate Debtor (CD), and only the Interim Resolution Professional ( IRP ) can file an appeal with approval from the Creditor Committee.
Briefly stated facts are Infrastructure Leasing and Financial Services Ltd. (IL&FS) (Assessee Company) is one of India’s leading infrastructure development and finance companies. IL&FS has a significant focus on investment banking, asset management and infrastructure financing. IL&FS has carved a niche for itself in infrastructure projects. The infrastructure services of IL&FS cover expertise across a variety of sectors like transportation, power, ports, water and wastewater, urban infrastructure, environment and education.
The AO made addition of Rs.593.6345 crore minus Rs.211,45,48,825/- suo-moto disallowance made by the assessee under Section 14A of Income Tax Act, 1961 read with rule 8D of the Income Tax Rules, 1962. The AO also made disallowance of Rs.54, 67,588/- claimed by the assessee on account of depreciation on computers. Further made addition of Rs.27,77,31,728/- on account of loss/unabsorbed depreciation claimed by the assessee and thereby framed the assessment under section 143(3) read with Section 147C(13) of the Income Tax Act.
The bench observed that when the resolution process has already been initiated all the proceedings against the corporate debtor including execution of judgment decree or order in any court of law, Tribunal, arbitration panel or other authority, present appeals in the present format are not maintainable, being not filed by the Interim Resolution Professional who is empowered to file appeal on approval of the committee of creditor. Hence, this appeal was liable to be dismissed as not maintainable at this stage.
Consequently, the two member bench of the tribunal comprising Gagan Goyal (Accountant member) and Kuldip Singh (Judicial member) concluded that the appeal filed by the assessee was hereby dismissed with liberty to file the fresh one in proper format duly verified the person authorized or to get the present appeal restored by moving an application.
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