ACIT, CENTRAL CIRCLE-02, NEW DELHI vs. ABHINAV STEELS & POWER LTD., NEW DELHI

The captioned appeal has been filed at the instance of the Revenue against the order of the Commissioner of Income Tax (Appeals)-32, New Delhi (‘CIT(A)’ in short), dated 21.01.2019 concerning AY 2015-16.

When the matter was called for hearing, the Ld. Counsel for the assessee in Revenue’s appeal pointed out that the National Company Law Tribunal (‘NCLT’ in short) at New Delhi in Company Petition No.(IB)- 275(ND)/2019 has passed an order dated 31.07.2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Ld. Counsel for the assessee adverted para 49 of the aforesaid order delivered by NCLT whereby moratorium in terms of Section 14 of the Insolvency & Bankruptcy Code, 2016 has been declared which interalia prohibits continuation of pending proceedings against the assessee including execution of any judgment, decree or in any court of law, Tribunal, arbitration panel or other authority. It was thus submitted that in view of the order of NCLT bearing overriding effect in terms of Insolvency and Bankruptcy code 2016, the Tribunal is prevented by law to continue with the pending appeal.

The Ld. DR for the revenue did not offer any comments on the aforesaid position convassed on behalf of the assessee.

The co-ordinate Bench of Tribunal in Dy. CIT Vs. Global Softech Ltd. order dated 16.03.2022 has, in similar fact situation, held that in the light of resolution plan, which is binding on the Tribunal, such pending appeals cannot proceed for adjudication.

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