Case Law Details
ACIT Vs Indus Mobile Distribution Pvt. Ltd. (ITAT Chennai)
ITAT Chennai in the case of ACIT Vs Indus Mobile Distribution Pvt. Ltd. exempts a dissolved company from Income Tax Assessment proceedings, in accordance with Section 54(2) of the Insolvency and Bankruptcy Code, 2016.
M/s. Indus Mobile Distribution Pvt. Ltd., the Assessee Company, was dissolved by the National Company Law Tribunal (NCLT), Chennai Bench, following Section 54(2) of the Insolvency and Bankruptcy Code, 2016. This led to the dissolution of the corporate debtor, namely the appellant company.
Despite the company being officially dissolved, the revenue authorities claimed that the company’s liquidation process had not been completed, citing the company’s “under liquidation” status on the MCA (Ministry of Corporate Affairs) portal. However, the ITAT Bench, composed of G. Manjunatha and Mahavir Singh, ruled that once a company has been dissolved, it ceases to exist and thus, no proceedings can be kept pending against it.
This verdict emphasizes the legal finality of dissolution and the fact that no further proceedings can be initiated or sustained against a dissolved entity, highlighting the definitive nature of dissolution under insolvency and bankruptcy laws.
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