ACIT, CENTRAL CIRCLE- 6, NEW DELHI vs. THREE C UNIVERSAL DEVELOPERS PVT. LTD., NEW DELHI

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ITA 7829/DEL/2018Status: DisposedITAT Delhi16 December 2021AY 2014-153 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The Tribunal held that the appeals filed by the Revenue were not maintainable because the company's board was superseded upon the appointment of an IRP. The appeals were dismissed with liberty to refile if the committee of creditors decided to pursue the matter.

What were the facts?

The Revenue filed three appeals against the assessee company for various assessment years. The assessee company was subsequently referred for insolvency proceedings under the Insolvency & Bankruptcy Code, 2016, and an Interim Resolution Professional (IRP) was appointed.

What were the issues?

The primary issue was the maintainability of appeals filed by the Revenue against a company undergoing insolvency proceedings. The Tribunal considered the effect of an IRP's appointment on the company's legal standing to represent itself.

Which sections of the Income-tax Act were involved?

Section 9

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, [ DELHI BENCH “G”: NEW DELHI ]

Before: SHRI N. K. BILLAIYASHRI AMIT SHUKLA

For Appellant: Shri Sanjeev Sapra, C. A.;
For Respondent: Shri H. K. Chaudhary
Hearing: 16/12/2021Pronounced: 16/12/2021

O R D E R PER AMIT SHUKLA, J. M.

1.

These three appeals are filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals)–24, New Delhi, dated 27.09.2018 for assessment years 2010-11, 2011-12 and 2014-15.

2.

The ld. DR submitted that above company has been referred to the Insolvency & Bankruptcy Code, 2016.

3.

Shri Sanjeev Sapra, appeared on behalf of the assessee.

4.

On careful consideration it is found that the above company has been referred for initiation of corporate insolvency process in terms of Section 9 of the Insolvency & Bankruptcy Code, 2016. The National Company Law Tribunal, Special Bench, New Delhi in IB 2582(ND)–2019 vide order dated 17th December, 2019 has referred this company for insolvency proceedings. Mr. Rakesh Kumar Gupta, has also been appointed as IRP. The present Departmental appeals are found to be filed by Shri Karthik Dasari in the capacity of the ACIT. The moment IRP is appointed, the board of the company is super-ceded. Therefore, the appeals filed by the ACIT are not maintainable. In view of this, we dismiss all the three appeals filed by the Revenue with a liberty that as soon as the committee of creditors is being decided to pursue this matter then the IRP should file these appeals. If it is so decided, then we give liberty to the IRP either to make an application for recall of this order by filing corrected Form No. 36 or to file the fresh appeals with the condonation of delay request. Accordingly, all the three appeals filed by the Department are dismissed.

Order pronounced in the open court on : 16/12/2021.

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