DCIT, CIRCLE-2(2), NEW DELHI vs. M/S. ANSAL PROPERTIES AND INFRASTRUCTURE LTD, NEW DELHI

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ITA 5239/DEL/2017Status: DisposedITAT Delhi08 November 2021AY 2010-112 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 Section 14 of the IBC prohibits continuation of any proceedings against a company undergoing insolvency. Therefore, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue filed an appeal against the deletion of penalty by the CIT(A). The respondent company was subsequently referred to the Insolvency and Bankruptcy Code (IBC), 2016, with insolvency proceedings initiated by the NCLT.

What were the issues?

Whether proceedings against a company can continue after it has been admitted into insolvency proceedings under the IBC, 2016.

Which sections of the Income-tax Act were involved?

Section 14

AI-generated summary — verify with the full judgment below

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

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri R. N. Sharma, A. R.;
For Respondent: Shri Sat Pal Gulati [CIT] – D. R.;
Hearing: 18/08/2021Pronounced: 08/11/2021

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

1.

This appeal is filed by the ACIT, Circle 2 (2) New Delhi, against M/s. Ansal Properties & Infrastructure Ltd., for assessment year 2010-11, against the levy of the penalty which was deleted by the ld. CIT (Appeals).

2.

At the time of hearing, it has come to our notice that the above Respondent – company has been referred to the Insolvency & Bankruptcy Code, 2016 (IBC) and on March 17, 2020 the NCLT has allowed a plea to initiate insolvency proceedings and appointed Insolvency Resolution Professional (IRP). Therefore, according to the provisions of Section 14 of the IBC, 2016, no suit or proceedings can be initiated against the above company. 3. The ld. DR was confronted with the same. He requested for the liberty to file as soon as insolvency proceedings are over. 4. On careful consideration, we find that Section 14 of the IBC, 2016 prohibits continuation of any proceedings against the company, which has been referred to insolvency proceedings under Section 7 of IBC, 2016. In view of Page | 1 this, we dismiss the appeal of the Revenue with liberty to file fresh appeal as soon as IBC proceedings are over or withdrawn. The appeal is dismissed.

Order pronounced in the open court on : 08/11/2021.

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