Director of a company does not have any locus standito to file an appeal in case an insolvency resolution professional has been appointed

The Income Tax Appellate Tribunal has dismissed an appeal filed by a company director. This decision was made because the company had been referred for insolvency resolution, and an Insolvency Resolution Professional (IRP) had been appointed. The Tribunal ruled that once an IRP is in place, the company's Board of Directors no longer has the legal standing (locus standi) to file such appeals. The IRP, acting under the Committee of Creditors' instructions, must file any fresh appeals.

INCOME TAX APPELLATE TRIBUNAL
[ DELHI BENCH “C”: NEW DELHI ]

BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)

ITA No. 7486/Del/2017
 (Assessment Year: 2009-10)

Jet Lite (India) Ltd,
Jet Air House,
13, Community Centre,
Yusuf Sarai, New Delhi
PAN: AADCS4480L
(Appellant) 

Vs.

DCIT,
Central Circle-6,
New Delhi
(Respondent)

Assessee by : None
Department by: Ms. Sunita Singh,
[CIT] – DR;

Date of Hearing 22/04/2021
Date of pronouncement 09/06/2021

O R D E R

PER PRASHANT MAHARISHI, A.M. :

1. This appeal is filed by the assessee company for assessment year 2009-10 against the order of the ld. Commissioner of Income Tax (Appeals)–23, New Delhi, dated 15.11.2017.

2. At the time of hearing, it has come to our notice that the above company has been referred for Insolvency & Bankruptcy Act, 2016 for resolution of insolvency in CPIB No. 3109 of 2019. As such this appeal has been filed by the Director of the company whereas as now insolvency resolution professional has been appointed, the Board of the Director of the company does not have any locus standito file this appeal. It is now required to be filed by IRP under instructions of COC.

3. As this appeal is filed by the Director of the company, in the circumstances, same is not maintainable and hence dismissed. However, we grant liberty to the IRP to file the appeal afresh, if COC so decides. 

4. Accordingly, appeal of the assessee in ITA. 7486 (Del) of 2017 is dismissed for above reasons.

Order pronounced in the open court on 09/06/2021.
 

 Sd/-                                     Sd/-
 ( AMIT SHUKLA )              (PRASHANT MAHARISHI)
JUDICIAL MEMBER          ACCOUNTANT MEMBER

Dated : 09/06/2021
*MEHTA*

Copy forwarded to
1. Appellant;
2. Respondent;
3. CIT
4. CIT (Appeals)
5. DR:ITAT

ASSISTANT REGISTRAR
ITAT, New Delhi

Date of dictation 09.06.2021
Date on which the typed draft is placed before the dictating member 09.06.2021
Date on which the typed draft is placed before the other member 09.06.2021
Date on which the approved draft comes to the Sr. PS/PS 09.06.2021
Date on which the fair order is placed before the dictating member for pronouncement 09.06.2021
Date on which the fair order comes back to the Sr. PS/PS 09.06.2021
Date on which the final order is uploaded on the website of ITAT 09.06.2021
date on which the file goes to the Bench Clerk 09.06.2021
Date on which the file goes to the Head Clerk
The date on which the file goes to the Assistant
Registrar for signature on the order
Date of dispatch of the order