Facts of the Case

The assessee, M/s C.N.C. Metal Forming Limited, filed appeals before the Income Tax Appellate Tribunal against the orders of the Commissioner of Income Tax (Appeals) relating to Assessment Years 2010-11 and 2011-12. The assessments were originally framed by the Assessing Officer under Section 143(3) for AY 2010-11 and Section 144/143(3) for AY 2011-12 of the Income-tax Act, 1961.

During the hearing before the Tribunal, no one appeared on behalf of the assessee despite several notices issued by the Tribunal. The Departmental Representative informed the Tribunal that the assessee company was already under liquidation proceedings.

It was also noted that the official liquidator had not been impleaded in the appeals, nor had any details of the liquidator been furnished before the Tribunal.

Issues Involved

  1. Whether an appeal filed before the ITAT is maintainable when the assessee company is under liquidation and the official liquidator has not been impleaded.
  2. Whether the appeals can proceed in the absence of representation by the assessee and without the participation of the official liquidator. 

Petitioner’s Arguments (Assessee)

  • The assessee had filed appeals against the orders of the CIT(A) relating to the respective assessment years.
  • However, no representation was made during the hearing, and no submissions or clarifications were provided regarding the status of liquidation or the appointment of the official liquidator. 

Respondent’s Arguments (Revenue)

  • The Departmental Representative informed the Tribunal that the assessee company was under liquidation proceedings.
  • It was argued that since the company was in liquidation and the official liquidator had not filed or ratified the appeals, the appeals filed in the existing format were not maintainable.

Court Order / Findings

The ITAT observed that:

  • The assessee company was under liquidation proceedings.
  • The official liquidator had not been impleaded in the appeal proceedings.
  • The assessee also failed to appear before the Tribunal or provide details of the appointed liquidator.

In such circumstances, the Tribunal held that the appeals filed before the ITAT in their present format were not maintainable.

Accordingly, the Tribunal dismissed the appeals, but granted liberty to the official liquidator to file a revised Form No. 36 on behalf of the assessee company, if desired. In such a situation, the appeals may be restored. 

Important Clarification

The Tribunal clarified that:

  • Appeals filed by a company under liquidation must be properly represented by the official liquidator.
  • If the official liquidator files a revised appeal in Form No. 36, the Tribunal may restore the appeals for adjudication.

Thus, the dismissal was procedural and not on merits, leaving scope for revival of the appeals

Link to download the order -  https://itat.gov.in/public/files/upload/1703582475-1130%20&%201131-2020-B-MB+YKUS-CNC%20Metal%20Forming%20Limited.pdf

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