DCIT, NOIDA vs. M/S. JAYPEE SPORTS INTERNATIONAL LTD., NOIDA

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ITA 4027/DEL/2015Status: DisposedITAT Delhi08 June 2021AY 2011-122 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 due to the moratorium granted by the NCLT, no proceedings could be carried forward against the company. The appeal filed by the Revenue was not in accordance with the Code as it was not filed by the Insolvency Resolution Professional (IRP).

What were the facts?

The Revenue filed an appeal against the assessee's assessment year 2011-12 order. The assessee company was subsequently referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016.

What were the issues?

Whether proceedings against a company under moratorium under the Insolvency and Bankruptcy Code can be continued. Whether an appeal filed by the Revenue without the involvement of the IRP is maintainable.

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: ‘D’ NEW DELHI

Before: SHRI PRASHANT MAHARISHI & SHRI K.NARASIMHA CHARY

For Respondent: Dr. Prabhakant, CIT-DR
Hearing: 8/6/2021

ORDER PER K. NARASIMHA CHARY, JM Challenging the order dated 27/3/2015 in appeal No. 139/2014- 15/Noidapassed by the learned Commissioner of Income Tax (Appeals)- II, Noida (“Ld. CIT(A)”), in the case of M/s JayPee sports international Ltd (“the assessee”) for the assessment year 2011-12, Revenue preferred this appeal.

2.

At the outset, it is brought to our notice that the assessee company has been referred to the National Company Law Tribunal (NCLT) under the Insolvency and a Bankruptcy Code, 2016 (“the Code”)

2 and moratorium in terms of section 14 of the Code, was granted by the NCLT. In the circumstances, till moratorium period is over, no proceedings against this company could be carried forward and even thereafter also the proceedings should be carried forward only by the Insolvency Resolution Professional (IRP) on the approval of the Committee of Creditors. The present appeal filed by the Revenue is not in accordance with the code, since it is not filed by the IRP, but filed by the Revenue which does not have any locus standi. Proceedings may be taken up subject to the resolution passed by the committee of creditors and approved by the NCLT. Thus, while granting liberty to the IRP to file a properly constituted appeal with the approval of the committee of creditors, we are of the considered opinion that this appeal can neither be entertained nor prosecuted any further. In view of this, the appeal of the assessee is dismissed.

Order pronounced in the open court on this the 8th day of June, 2020-21 in open court immediately on conclusion of hearing in virtual mode.

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