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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI AMIT SHUKLA, JM & SHRI PRASHANT MAHARISHI, AM
2 & 2389/Mum/2021 Bombay Rayon Fashions Limited आदेश / O R D E R
Per Amit Shukla, Judicial Member:
The aforesaid appeal has been filed by the assessee and cross appeal filed by the revenue against impugned order dated 28.09.2021, passed by Ld. CIT (Appeals)-54, Mumbai for the quantum of assessment passed u/s 143(3) for the AY 2013-14.
At the outset, it is noticed that in this case National Company Law Tribunal, Mumbai (NCLT) has passed order approving the resolution plan of the assessee in the petition filed under IBC, which has been admitted and moratorium has been passed u/s 14 of the IBC.
Thus, once NCLT has passed the order in pursuance of petition filed u/s 7 of IBC for initiating insolvency process against the corporate debtor, i.e., the assessee company and there is moratorium imposed u/s 14 of IBC, then all the proceedings stands in abeyance.
In view of the moratorium, no proceedings can be initiated against the corporate debtor, that is, assessee company including the present proceedings before this tribunal, or the income tax
3 & 2389/Mum/2021 Bombay Rayon Fashions Limited proceedings and recovery of demand or giving effect of any order. It is well settled now that, IBC has overriding affect on all the acts including Income Tax Act which has been specifically provided u/s 178(6) of the I.T. Act as amended w.e.f. 01.11.2016.
Accordingly, the appeal filed by the assessee in the present circumstances, cannot be proceeded with, as revenue has also not sought any permission by the committee of creditors. Till the completion of moratorium period or upon the revival of corporate debtor as per the resolution plan approved by the adjudicating authority, the appeals filed by the assessee are treated as dismissed in limini. However, liberty is given to the parties to revive /restitute all the aforesaid appeals after the moratorium period expires or as approved by the adjudicating authority.