VINAYAK RATHI STEELS ROLLING MILLS P. LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE-6, NEW DELHI

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ITA 7837/DEL/2018Status: DisposedITAT Delhi15 July 2022AY 2015-163 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that due to the moratorium declared by the NCLT, all proceedings in any court of law or tribunal cannot continue. Therefore, continuing the present appeals would serve no useful purpose.

What were the facts?

The assessee's appeals were listed for hearing, but no one appeared on their behalf. The assessee had furnished a judgment from the National Company Law Tribunal (NCLT) which granted a moratorium under the Insolvency and Bankruptcy Code, 2016.

What were the issues?

Whether proceedings before the Income Tax Appellate Tribunal can continue when a moratorium has been declared by the NCLT under the Insolvency and Bankruptcy Code, 2016.

Which sections of the Income-tax Act were involved?

Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI SAKTIJIT DEY & DR. B.R.R. KUMAR

Hearing: 29.06.2022Pronounced: 15.07.2022

Appellant by None Respondent by Sh. T. Kipgen, CIT (DR) Date of hearing 29.06.2022 Date of pronouncement 15.07.2022 ORDER PER SAKTIJIT DEY, JM:

Captioned appeals arise out of separate orders of learned Commissioner of Income Tax (Appeals)-XXVI, New Delhi, all dated 19th September, 2018, for the assessment years 2012-13, 2013-14, 2014-15 and 2015-16 respectively.

2.

At the time of call, none appeared on behalf of the assesse.

However, the assessee has furnished judgment dated 16.06.2020 of National Company Law Tribunal (NCLT), Principal Bench, New Delhi, whereby the NCLT under section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) granted moratorium in terms with section 14 of the said Code.

3.

We have heard learned Departmental Representative and perused the materials on record. It is observed, certain financial creditors have filed application under section 7 of the IBC seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the assessee. Allowing the application of the financial creditors, the NCLT has delivered a judgment on 16.06.2020 in C.P. No. (IB)

1295(ND)/2019 and has initiated CIRP by appointing an interim Insolvency Resolution Professional. In the interregnum, the Hon’ble NCLT has declared moratorium in terms with section 14 of the IBC.

In this regard, the following observations of the Hon’ble NCLT is relevant:

“21. Accordingly, this petition is ADMITTED. A Moratorium in terms of Section 14 of the IBC, 2016 shall come into effect forthwith Staying:- (a) The institution of suits or continuation of pending suits or proceedings against the corporation debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority: …………………………………………………………………” 4. Thus, in view of moratorium declared by NCLT, all proceedings in any court of law, Tribunal etc. cannot continue.

That being the position in law, no useful purpose is going to be served in continuing the present proceedings. Therefore, these appeals need to be consigned to the records.

5.

In view of the aforesaid, we dismiss these appeals. However, opportunity is granted to the parties to seek revival of the appeals, in case, order of NCLT is either reversed or modified by any higher judicial forum or if it is necessary to do so in the interest of the parties.

6.

In the result, all the appeals are dismissed for statistical purposes.

Order pronounced in the open court on 15th July, 2022

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