PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL)-2 vs. M/S TIRUPATI INFRA PROJECTS PVT.LTD.

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ITA/772/2017HC DelhiDLHC01325038201727 September 2017Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Delhi held that the appeal could not be entertained due to the moratorium ordered by the National Company Law Tribunal (NCLT) on 3rd July, 2017, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Court reasoned that the moratorium order prevented the appeal from being proceeded with at that time. The Revenue was granted the liberty to revive the appeal at a later stage, subject to the orders that would be passed by the NCLT. No decision was made on the merits of the appeal itself, as it was disposed of on a procedural ground. The operative direction was to dispose of the appeal, with the possibility of revival.

What were the facts?

The appellant, Principal Commissioner of Income Tax (Central)-2, filed an appeal before the High Court of Delhi against an order (the nature of which is not specified in the provided text). The respondent is Tirupati Infra Projects Pvt. Ltd. The appeal was filed for the assessment year(s) not mentioned in the text. A crucial procedural development occurred when the learned counsel for the respondent brought to the court's attention an order dated 3rd July, 2017, passed by the National Company Law Tribunal (NCLT) under Section 7 of the Insolvency and Bankruptcy Code, 2016, which imposed a moratorium. This moratorium order was the primary reason for the court's decision.

What were the issues?

1. Whether the appeal filed by the Revenue can be entertained in light of the moratorium order passed by the National Company Law Tribunal (NCLT) under Section 7 of the Insolvency and Bankruptcy Code, 2016? (Question of law) Assessee's Contention: The learned counsel for the respondent (assessee) pointed out the existence of a moratorium order by the NCLT dated 3rd July, 2017, under Section 7 of the Insolvency and Bankruptcy Code, 2016. This was presented as a reason why the appeal could not be entertained. Revenue's Contention: The judgment does not record any specific contention from the Revenue regarding the maintainability of the appeal in light of the NCLT order. The appeal was filed by the Revenue.

Which sections of the Income-tax Act were involved?

Section 7

AI-generated summary — verify with the full judgment below

$~2. * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA 772/2017

PRINCIPAL COMMISSIONER OF

INCOME TAX (CENTRAL)-2

..... Appellant Through: Mr.Sanjay Kumar, Mr.Rahul Chaudhary, Advocates.

Versus

TIRUPATI INFRA PROJECTS PVT.LTD. ..... Respondent Through: Mr.P.C.Yadav, Advocate with Ms.Neha Gupta, Advocate. CORAM: JUSTICE S. MURALIDHAR JUSTICE PRATHIBA M. SINGH

O R D E R %

27.09.2017 1. At the outset, the learned counsel for the Respondent points out that there is a moratorium ordered by the National Company Law Tribunal (NCLT) by its order dated 3rd July, 2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016.

2.

In that view of the matter, the present appeal cannot be entertained. It would be open to the Revenue to revive the appeal subject to the orders of the NCLT.

3.

The appeal is disposed of.

S. MURALIDHAR, J.

PRATHIBA M. SINGH, J. SEPTEMBER 27, 2017/‘anb’

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