Case Law Details
Infrastructure Leasing and Financial Services Ltd Vs Addl./Joint/Deputy/Assistant Commissioner of Income Tax, National e-Assessment Centre (ITAT Mumbai)
In a recent case before the Income Tax Appellate Tribunal (ITAT) Mumbai between Infrastructure Leasing and Financial Services Ltd. (IL&FS) and the Assessing Officer (AO), the appellant sought to challenge the order passed by the AO in line with the orders by the Dispute Resolution Panel/Transfer Pricing Officer under section 143(3) read with section 144C of the Income-tax Act, 1961 for the assessment year 2016-17.
The appellant contested several grounds, including the determination of total income, the applicability of specified domestic transaction (SDT) provisions, and the addition of advisory service charges and payments to executive directors. However, during the proceedings, it was highlighted that the National Company Law Tribunal (NCLT) had initiated a resolution process in relation to IL&FS and its group companies.
The NCLT order restrained the institution or continuation of suits or proceedings against IL&FS and its group companies, as well as actions to enforce security interests or financial obligations. In light of this, the ITAT noted that when the resolution process has already been initiated, all proceedings against the corporate debtor, including court actions, are not maintainable.
Since the appellant hadn’t filed the appeal through the Interim Resolution Professional (IRP) as required under the resolution process, the ITAT deemed the appeal not maintainable and dismissed it. However, the appellant was granted liberty to file a fresh appeal in the proper format or to seek restoration of the present appeal through an application.
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