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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
This appeal is filed by Dy. Commissioner of Income Tax, Circle 8(2)(1), Mumbai, (the learned Assessing Officer) against the order passed by the learned Commissioner of Income-tax (Appeals)–14, Mumbai, [the learned CIT(A)] dated 10th March, 2017 for A.Y. 2007–08 raising following grounds of appeal:-
“(1) The Learned CIT(A) has erred on facts and in law in justifying the fact that the investing company invested in the share premium of the company without making any enquiry regarding profit of the company, earnings per share, history of dividend
(ii) The Learned CIT(A) has erred on facts and in law in deleting the addition made by the AO when the assessee nor the investor has provided the details which proves the credit worthiness and the same is not commensurate to have afforded to make such huge investment to share premium of the assessee company.
2. The Ld.CIT(A)'s order is contrary to law and facts and deserves to be set aside and A.O.'s order may be restored.”
At the time of hearing, the advocate of the assessee submitted a letter wherein the order of the National Company Law Tribunal (NCLT) dated 7th May, 2018 is filed, wherein assessee is a corporate debtor and corporate insolvency resolution process under IBC 2016 is continuing. In terms of Section 14 of IBC 2016, no proceedings can continue against the corporate debtor.
The learned Departmental Representative pointed out our attention that letter dated 17th May, 2021 states these facts.
We find that as the corporate insolvency resolution process is continuing in case of the above assessee the learned Assessing Officer cannot continue to pursue this appeal. Accordingly, in terms of Section 14 of IBC 2016, we dismiss the appeal of the learned Assessing Officer
In the result, the appeal of the learned Assessing Officer is dismissed.
Order pronounced in the open court on 27.07.2022.