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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI ANADEE NATH MISSHRA
ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER:
Captioned appeal has been filed by the assessee challenging the order dated 19.04.2017, passed under Section 154 read with section 263 of the Income-Tax Act,1961 for the assessment year 2012-13.
At the time of hearing, learned counsel for the assessee submitted, in terms with section 7 of Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority Rules, 2016 Corporate Insolvency Resolution Process (CIRP) was initiated in case of assessee before National Company Law Tribunal (NCLT), in pursuance to an application filed by one of the financial creditors. He submitted, NCLT passed an order on 04.01.2021 approving the resolution plan. In this regard, he drew our attention to the copy of the order of NCLT placed in the paper book. Thus, he submitted, in view of the CIRP, proceedings under any other Act cannot be proceeded unless and until the order of NCLT approving CIRP either is reversed or modified.
Learned Departmental Representative agreed with the aforesaid submissions of the assessee.
Having considered rival submissions and perused the material on record, it is observed, while approving CIRP in order dated 04.01.2021, NCLT has observed as under:
“19. Thus, the resolution plan filed with the Applicant meets the requirements of se4ction 30 and 31 of IBC, 2016 and Regulation 37, 38, 38(1A) and 39(4) of the IBBI(CIRP) Regulation, 2016. The provisions of Section 29A of IBC are not attracted. The RP has also verified that the “Resolution Plan” approved by the CoC does not contravene any of the provisions of the law for the time being in force. The RP has filed compliance certificate in Form H as required under regulation 39(4) of the IBBI (CIRP) Regulations, 2016.
The Resolution Applicant has prayed for the reliefs as enumerated under the Regulation Plan approved by the CoC. From the plan approval date, all inquiries, investigation and proceedings, whether civil or criminal, suits, claims, disputes, interests and damages in connection with the Corporate Debtor or the affairs of the Corporate Debtor, pending or threatened, present or future in relation to any period prior to the plan approval date, or arising on account of implementation of this resolution plan shall stand withdrawn, satisfied and discharged. From the date of approval of the ‘Resolution Plan’, the Resolution Applicant shall be legally authorized to seek appropriate orders from respective authorities/courts/tribunals for renewal of licenses/withdrawal/dismissal or abatement of the proceedings as the case may be.
The Corporate Debtor shall be entitled to carry forward all accumulated business losses and unabsorbed depreciation, if any, from the date of approval of the Resolution Plan, except as provided in the Resolution Plan, all the pending statutory dues including taxes/cess/interest/penalty and other liabilities due to the operational creditors shall stand satisfied/waived off. The reason for these waivers and abatement is that the Operational Creditors would not get more than that as provided in the Resolution Plan, in the event of liquidation of the Corporate Debtor, as per the waterfall mechanism provided under Section 53 of the I&B Code, 2016. Moreover, this is with a view to implement the Resolution Plan successfully as approve4d by the CoC. It is also made clear any relief/concession prayed by the applicant, which is beyond the jurisdiction of this adjudicating authority shall be construed as rejected.
In view of the above, the “Resolution Plan” annexed with IA No.3708/2020 in IB-1404(ND)/2019 is hereby approved, shall be binding on the corporate debtor and its employees, members, creditors, guarantors, other stakeholders including statutory authorities and the Resolution Applicant.”
In view of the aforesaid, we are of the opinion that since the NCLT has approved resolution process plan vide order dated 04.01.2021 in respect of the assessee company, no other proceedings arising under any other Act/Law including the present proceeding, cannot be adjudicated till the CIRP is in vogue. Therefore, for the present, no useful purpose is going to be served in continuing the present proceedings. Therefore, the appeal needs to be consigned to the record.
In view of the aforesaid, we dismiss the appeal of the assessee.
However, liberty is granted to the assessee to seek revival of the appeal, in case, order of the NCLT is either reversed or modified by any higher judicial forum.
In the result, appeal is dismissed for statistical purposes.
Order pronounced in the open court on 19th May, 2022.