ASST. CIT 5 (2)(1), MUMBAI vs. JET LITE (INDIA) LTD., DELHI

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ITA 5703/MUM/2019Status: DisposedITAT Mumbai02 January 2023AY 2015-163 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal decided to dismiss the Revenue's appeal due to the assessee being under insolvency proceedings and the moratorium period under the Insolvency and Bankruptcy Code. The AO was given liberty to restore the appeal after the moratorium period.

What were the facts?

The Revenue appealed against the CIT(A)'s order which deleted additions made by the AO. The assessee, an airline company, had declared a significant loss in its return. The assessee was undergoing insolvency proceedings.

What were the issues?

Whether the appeal filed by the Revenue should be proceeded with when the assessee is undergoing insolvency proceedings. The impact of the moratorium period under the Insolvency and Bankruptcy Code on ongoing appeals.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & MS. KAVITHA RAJAGOPAL, JM

For Appellant: Shri Sunil A. Umap
Pronounced: 02.01.2023

This appeal has been filed by the Revenue, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), passed u/s. 250 of the Income Tax Act, 1961 (‘the Act'), relevant to the Assessment Year (‘A.Y.’ for short)

2015-16.

2.

The Revenue has challenged the order of the ld. CIT(A) in deleting the various additions made by the Assessing Officer (A.O. for short), pertaining to different grounds.

It is observed that there was no representation on behalf of the assessee, inspite of several opportunities given, we therefore proceed to decide this appeal by hearing the ld.

(A.Y. 2015-16) Asst. CIT vs. Jet Lite (India) Ltd. Departmental Representative (ld. DR for short) and on perusal of the available materials on record.

3.

The brief facts are that the assessee is a scheduled airline company involved in the business of running domestic and international flights. The assessee filed its return of income dated 30.11.2015, declaring total loss of Rs.230,71,31,730/-. The assessee’s case was selected for scrutiny and the assessment order dated 07.11.2017 was passed u/s. 143(3), wherein the A.O. had made various additions/disallowances to the total income of the assessee.

4.

The assessee was in appeal before the ld. CIT(A) challenging the assessment order passed by the A.O. The ld. CIT(A) deleted the impugned additions made by the A.O.

5.

The Revenue is in appeal before us, challenging the order of the ld. CIT(A).

6.

During the appellate proceeding, it is observed that the assessee company was undergoing insolvency proceedings before the Hon’ble National Company Law Tribunal and by invoking the provisions of section 14 of Insolvency and Bankruptcy Code, 2016, we are inclined to dismiss this appeal filed by the Revenue with the liberty that the A.O. may restore the appeal, if need be after the completion of the moratorium period.

7.

In the result, this appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 02.01.2023

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