ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-25(1), NEW DELHI, NEW DELHI vs. VAYAM TECHNOLOGIES LIMITED, NEW DELHI

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ITA 5281/DEL/2024Status: DisposedITAT Delhi08 July 2026AY 2011-123 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 held that the appeal filed by the Revenue was not maintainable due to the statutory moratorium in force under Section 14 of the Insolvency and Bankruptcy Code, 2016. The IBC has an overriding effect over other enactments, including the Income Tax Act.

What were the facts?

The Revenue filed an appeal against the order of the CIT(A) which had deleted certain additions made by the Assessing Officer. The assessee, Vayam Technologies Ltd, had been admitted into Corporate Insolvency Resolution Process (CIRP) by the NCLT.

What were the issues?

Whether an appeal by the Revenue is maintainable against a corporate debtor undergoing CIRP and subject to a moratorium under the IBC.

Which sections of the Income-tax Act were involved?

Section 14,Section 238,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI

For Appellant: Shri P. K. Katyal, CA
For Respondent: Shri Tarun Sharda, Sr. DR
Hearing: 01/07/2026Pronounced: 08/07/2026

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 5281/Del/2024 (Assessment Year: 2011-12) ACIT, Vs. Vayam Technologies Ltd, Circle-25(1), 124, Thapar House, Janpath, New Delhi Delhi (Appellant) (Respondent) PAN: AAACI8050R Assessee by : Shri P. K. Katyal, CA Revenue by: Shri Tarun Sharda, Sr. DR Date of Hearing 01/07/2026 Date of pronouncement 08/07/2026

O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.5281/Del/2024 for AY 2011-12, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 23.09.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 29.03.2014 by the Assessing Officer, ACIT, Circle-25(1), New Delhi (hereinafter referred to as ‘ld. AO’).

2.

The revenue has raised the following grounds of appeal before us:-

“1. Whether, on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of Rs. 9,33,75,712/ on account of disallowance u/s 801B of the IT Act. 2. Whether, on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of Rs. 6,86,293/ on account of disallowance of welfare and training expenses. 3. Whether, on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of Rs. 2,94,371/- on account of disallowance of business development expenses.

ITA No. 5281/Del/2024 Vayam Technologies Ltd

4.

The appellant craves leave to add, alter, amend, append or delete any of the above grounds of appeal.” 3. We have heard the rival submissions and perused the materials available on record. At the outset, the assessee raised a preliminary objection regarding the maintainability of the appeal of the revenue at this stage by stating that the assessee has been admitted into Corporate Insolvency Resolution Process (CIRP) by order of the Hon’ble National Company Law Tribunal (NCLT) dated 25-3-2022 and consequently a statutory moratorium under section 14 of the Insolvency and Bankruptcy Code 2016 (IBC) is in force as on date. The Learned AR placed the copy of order passed by NCLT dated 25-3-2022 on record. In terms of section 14 read with section 238 of the IBC, the institution or continuation of any proceedings against the Corporate Debtor (i.e. the assessee herein) is expressly barred during the subsistence of the moratorium in view of the overriding effect of the IBC over all other enactments including the Income Tax Act. The Hon’ble Supreme Court in the case of PCIT vs Monnet Ispat & Energy Limited had also categorically held that once Insolvency Proceedings are initiated, all proceedings under the Income Tax Act against the Corporate Debtor stand stayed in view of the moratorium provisions of the Insolvency and Bankruptcy Code. Accordingly, we hold that the appeal preferred by the revenue is not maintainable during the continuance of the moratorium and hence cannot be proceeded at this stage.

4.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 08/07/2026.

-Sd/- -Sd/- (SATBEER SINGH GODARA) (M BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated: 08/07/2026 A K Keot Copy forwarded to 1. Applicant

ITA No. 5281/Del/2024 Vayam Technologies Ltd

2.

Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi

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