ACIT-6(1)(2), MUMBAI, MUMBAI vs. NIRJALA TELEHOLDINGS LTD, THANE

ITA 1558/MUM/2025Status: DisposedITAT Mumbai12 November 2025AY 2007-08Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that, due to the statutory moratorium under Section 14(1) of the IBC, it is legally restrained from entertaining or proceeding with the appeals against the corporate debtor. Consequently, the appeals are dismissed in limine, with liberty for the Revenue to seek restoration once the moratorium ceases or appropriate permissions are obtained.

What were the facts?

The Revenue filed appeals against assessment orders for AY 2006-07 and 2007-08 passed by the NFAC. However, the respondent company has been admitted into Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016, and a moratorium under Section 14(1) of the IBC is in effect, suspending all proceedings against the corporate debtor.

What were the issues?

Whether the Income Tax Appellate Tribunal can proceed with appeals against a corporate debtor when it is under a moratorium imposed by the Insolvency and Bankruptcy Code, 2016.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 7,Section 7(5),Section 14,Section 14(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Respondent: Shri Vaibhav Jain, CIT DR
Hearing: 10/11/2025Pronounced: 12/11/2025

PER AMIT SHUKLA (J.M):

These two appeals have been preferred by the Revenue against separate impugned orders, both dated 10 December 2024, passed by the National Faceless Appeal Centre (NFAC), Delhi, pertaining to the assessments framed under section 143(3) of the Income-tax Act, 1961 for the assessment years 2006-07 and 2007-08. 2. At the threshold of hearing, the learned Departmental Representative drew our attention to the significant respondent-company, Nirjala Teleholdings Limited, has been admitted into the Corporate Insolvency Resolution Process (CIRP) under section 7 of the Insolvency and Bankruptcy Code, 2016, by an order of the Hon’ble National Company

The order continues below.

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