ACIT, CC- 17, NEW DELHI vs. AERENS GOLDSOUK INTERNATIONAL LTD., NEW DELHI

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ITA 4429/DEL/2017Status: DisposedITAT Delhi10 August 2021AY 2011-123 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 no proceedings against the company could continue during the moratorium period under Section 14 of the IBC Code, 2016. The Revenue's appeals were dismissed on this ground.

What were the facts?

The Revenue filed four appeals against the assessee for various assessment years. The assessee company was referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), 2016.

What were the issues?

Whether proceedings against a company undergoing insolvency resolution can continue. The applicability of the moratorium under the IBC Code to ongoing tax appeals.

Which sections of the Income-tax Act were involved?

Section 14 IBC Code, 2016

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 Respondent: Shri Satpal Gulati [CIT] – DR;
Hearing: 10/08/2021Pronounced: 10/08/2021

O R D E R PER BENCH :

1.

These four appeals are filed by the Revenue against the order passed by the ld. Commissioner of Income Tax (Appeals)–25, New Delhi, for assessment years 2008-09, 2010-11, 2011-12 and 2012-13.

2.

At the time of hearing despite notice none appeared on behalf of the assessee. It has come to the notice that the above company has been referred to NCLT under Section 7 of IBC Code, 2016 wherein the NCLT has passed an order on 09th January, 2020. Therefore, till the resolution process in the above company is not over, no proceedings against that company can continue, according to Section 14 IBC Code, 2016. 3. The ld. DR also agreed to the same. 4. In view of the above facts all these appeals filed by the Assessing Officer, Circle 17, New Delhi, are dismissed in view of Section 14 of the IBC Code, Page | 1 ITAs. 4427 TO 4430/Del/2017 2016 . However we grant liberty to the ld. Assessing Officer that as soon as the moratorium period is over or in case whenever the respondent company goes out of IBC Code, 2016, he may file an application for recall of the above order for pursuing the appeal is on the merit. 5. In the result, for the above reasons, the appeals of the learned AO are dismissed.

Order pronounced in the open court on : 10/08/2021.

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