DCIT, CORPORATION CIRCLE- 1(1), BHUBANESWAR vs. ARSS INFRASTRUCTURE PROJECTS LTD., BHUBANESWAR

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ITA 228/CTK/2023Status: DisposedITAT Cuttack23 April 2024AY 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 dismissed the appeals filed by the revenue. This dismissal is conditional, allowing the revenue to seek restoration of the appeals after the insolvency proceedings are concluded if their interests are affected.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A) for assessment years 2011-12 and 2015-16. The assessee, undergoing Corporate Insolvency Resolution Process (CIRP), sought adjournment due to a moratorium declared under the Insolvency and Bankruptcy Code.

What were the issues?

Whether appeals should be adjourned or dismissed due to a moratorium under the Insolvency and Bankruptcy Code, and the potential prejudice to both parties.

Which sections of the Income-tax Act were involved?

Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: MANISH AGARWAL

For Respondent: Shri Sanjay Kumar, CIT, Shri Sanjay Kumar, CIT DR
Hearing: 23/0Pronounced: 23/0

O R D E R Per Bench These are These are appeals filed by the revenue against the against the separate orders of the ld CIT(A)- -2, Bhubaneswar dated 20.3.2023 and 27.3.2023 in Appeal 20.3.2023 and 27.3.2023 in Appeal No.Bhubaneswar No.Bhubaneswar-1/ 10358/2018-19 and No. Bhubaneswar Bhubaneswar-1/11046/2017- 18 for the assessment years 2011 18 for the assessment years 2011-12 and 2015-16, respectively. 16, respectively.

2.

Shri Sanjay Kumar, ld CIT DR Sanjay Kumar, ld CIT DR appeared for the revenue. appeared for the revenue. None appeared for the appeared for the assessee. However, letter has been filed mentioning been filed mentioning that the Corporate Insolvency Resolution Process (CIRP) is operating on the the Corporate Insolvency Resolution Process (CIRP) is operating on the the Corporate Insolvency Resolution Process (CIRP) is operating on the assessee and the Adjudicating Authority has declared moratorium u/s.14 of assessee and the Adjudicating Authority has declared moratorium u/s.14 of assessee and the Adjudicating Authority has declared moratorium u/s.14 of P a g e 1 | 3 & 228/CTK/2023 Assessment Years : 2011-12 & 2015-16 the Insolvency and Bankruptcy Code, 2016. It was the prayer that the appeal hearing be held back or kept in abeyance till the disposal of the NCLT order.

3.

In reply, ld CIT DR submitted that setting aside of the appeals would cause prejudice to the assessee insofar as proceedings would get reinitiated. It was the submission that it would also cause prejudice to the revenue insofar as the revenue would not be able to contest these appeals.

4.

We have considered the submission of ld CIT DR and the adjournment petition filed by the assessee. As rightly pointed out by ld CIT DR during the pendency of the proceedings before the NCLT in the insolvency proceedings, any fresh demand raised on the assessee would cause prejudice. This being so, the appeals filed by the revenue are dismissed subject to the condition that after completion of the insolvency proceedings before the NCLT, the revenue shall have the liberty to pray restoration of the appeals in the event that the revenue feels its interest are affected.

5.

In the result, appeals filed by the revenue stand dismissed.

1.

Order dictated and pronounced in the open court on 23/04/2024. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 23/04/2024

P a g e 2 | 3 & 228/CTK/2023 Assessment Years : 2011-12 & 2015-16

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