What did the Tribunal hold?

The Tribunal held that the department cannot proceed with appeals without establishing a claim in the insolvency proceedings. Since no claim was shown to have been made by the department, keeping the appeals pending was not justified.

The assessee company, M/s IL & FS Energy Development Company Ltd., is appealing against assessment orders for AYs 2017-18 and 2018-19. The National Company Law Appellate Tribunal (NCLAT) had granted a moratorium, staying all proceedings against the assessee.

What were the issues?

Whether appeals can be pursued when a moratorium is in place and no claim has been established in insolvency proceedings.

DCIT vs Il and Fs Energy Development… | ITAT Delhi 2026

Income Tax Appellate Tribunal, “C” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA&

Hearing: 02.06.2026Pronounced: 24.06.2026

P a g e | 1 ITA Nos. 2701 & 2768/Del/2024 M/s IL & FS Energy Development Company Ld. (AYs: 2017-18 & 2018-19) IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI

BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA Nos.2701 & 2768/Del/2024 (Assessment Years: 2017-18 & 2018-19)

ACIT, Circle -10(1) Vs. M/s IL & FS Energy Room No. 389A, 3rd Floor, Development Company CR Building, IP Estate Limited, 3rd Floor, Niryat Delhi – 110001 Bhavan, Rao Tula Ram Marg, Vasant Vihar-1 South West Delhi Delhi-110057 स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AABCI6885K Appellant .. Respondent

Appellant by : Sh. Vikrant Maheshwari, Adv. Respondent by : Sh. Vikram Singh Sharma, CIT-DR

Date of Hearing 02.06.2026 Date of Pronouncement 24.06.2026

O R D E R PER ANUBHAV SHARMA, JM:

These appeals preferred by the assessee against the order dated 16.03.2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’)

P a g e | 2 ITA Nos. 2701 & 2768/Del/2024 M/s IL & FS Energy Development Company Ld. (AYs: 2017-18 & 2018-19) in DIN & Order No: ITBA/NFAC/S/250/2023-24/1062751720(1) arising out of the assessment order dated 27.04.2021 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National e- Assessment Centre, Delhi for AYs: 2017-18 & 2018-19.

On hearing both sides we find that in regard to the present appeals of the department assesse has relied National Company Law Appellate Tribunal order dated 15.10.2018 in Company Appeal (AT) No. 346 & 347/2018 whereby moratorium like protection has been granted by staying the institution or continuation of suits or any proceedings by any party against the assesse company or its group company in any court of law including, Tribunal and based upon same assessing officer has filed a reply through ld. DR that the appeals be kept in abeyance or adjourned sine die till the final outcome of proceeding before NCLT.

We are of the considered view that once moratorium has been granted then without first establishing a claim in the insolvency or liquidation proceedings, the department cannot succeed and there is nothing before us to show that any claim of the department has been made with regard to present assesse and the issue therein involved. Keeping appeals pending is not justified.

P a g e | 3 ITA Nos. 2701 & 2768/Del/2024 M/s IL & FS Energy Development Company Ld. (AYs: 2017-18 & 2018-19) 4. Accordingly, the appeals are dismissed, with a liberty to get the appeals restored in case any favourable order with regard to claim of the department, in the impugned assessment orders involved, is available as a remedy to the department to prosecute the appeals.

Order pronounced in the open court on 24.06.2026

Sd/- Sd/- (Amitabh Shukla) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 24.06.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT NEW DELHI

DCIT, CIRCLE - 10(1), DELHI vs. IL AND FS ENERGY DEVELOPMENT COMPANY LIMITED, DELHI

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