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

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).

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| 1 this, we dismiss the appeal of the Revenue with liberty to file fresh appeal as soon as IBC proceedings are over or withdrawn.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.