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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGH & SHRI MANJUNATHA.G
आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT:
These appeals by the Revenue are arising out of the two different orders of the Commissioner of Income Tax (Appeals)-18, Chennai in & 147/16-17 and 145/16-17 dated 04.07.2017 & 05.07.2023. The assessments were framed by the ACIT, Central Circle 2(3), Chennai for the assessment years 2010- 11 & 2011-12 u/s.143(3) r.w.s. 153A of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide orders of even date 31.03.2016.
These three appeals by Revenue, when called for hearing none is present from assessees side but it is noticed that in & 2458/CHNY/2017, there is a letter dated 21.09.2018 whereby the assessee has contended that the company is undergoing ‘Corporate Insolvency Resolution Process’ (CIRP) initiated by National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) 2016. For this, assessee has written as under:- Surana lndustries Limited is currently undergoing "Corporate Insolvency Resolution Process" (CIRP) initiated by the "National Company Law Tribunal" (NCLT) under the "Insolvency and Bankruptcy Code, (|BC) 2016. The Order of the Tribunal was pronounced on 2nd January, 2018. The copy of the same is attached for your reference.
3 to 2459/Chny/2017 Based on the above Order, the NCLT Court has appointed an Insolvency Professional who shall take charge of the entire assets of the Company and run the Company with the approval of the Financial Creditors, Viz. the banks. The Resolution Professional has since taken charge based on the Order dt. 2nd January, 2018. The Order Copy is also attached. National Company Law Tribunal (NCLT) Order, in para 11, the Adjudicating Authority of the National Company Law Tribunal (NCLT) has declared a Moratorium Period until the completion of the CIRP period thereby prohibiting from the following, namely:-
(a) The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including executing any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority, (b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein, (c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (d) The recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate Debtor.
Under the circumstance, we kindly request you, to kindly put on hold any proceedings initiated against the Corporate Debtor until the completion of the Corporate Insolvency Resolution Process Period and oblige. Similar letter is also filed in ITA No.2459/CHNY/2017.
The only common issue in these three appeals of Revenue is against the order of CIT(A) deleting the addition made by the AO on computation of book profit u/s.115JB of the Act and one further issue in is deletion of addition made by AO on interest income earned from investment in temporary deposits and mutual funds before start of the business activity.
4 to 2459/Chny/2017 4. Despite service of notice, none is present from assessee’s side since 2018 and on going through the assessment orders and the order of CIT(A), we noted that since the companies are under liquidation and Corporate Insolvency Resolution Process is in progress, we feel that the matter be restored back to the file of the AO for fresh adjudication. The AO will readjudicate the issues after completion of Corporate Insolvency Resolution Process initiated by NCLT under the Insolvency and Bankruptcy Code 2016. In term of the above, all these appeals are restored back to the file of the AO. The Revenue’s appeals are allowed for statistical purposes.
In the result, the appeals filed by the Revenue in 2458 & 2459/CHNY/2017 are allowed for statistical purposes.