DCIT -3(3)(2), MUMBAI vs. VIDEOCON INDUSTRIES LTD., MUMBAI

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ITA 3281/MUM/2018Status: DisposedITAT Mumbai19 July 2022AY 2010-113 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 could be continued against the corporate debtor during the moratorium period. Therefore, the appeals filed by the Revenue were dismissed.

What were the facts?

The Revenue filed appeals against the orders of the CIT(A). The assessee company was undergoing corporate insolvency resolution process under the IBC-2016, and a moratorium was declared by the NCLT, prohibiting continuation of pending proceedings.

What were the issues?

Whether pending appeals against a company undergoing insolvency resolution process can be continued during the moratorium period declared under the IBC-2016.

Which sections of the Income-tax Act were involved?

Section 14 of IBC-2016

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “F”, MUMBAI

Before: SHRI ABY T VARKEY & SHRI AMARJIT SINGH

For Respondent: Shri Prabhat Kumar Gupta, D.R

2 M/s. Videocon Industries Ltd.

2.

At the time of hearing, the Ld. D.R. has brought to the knowledge of the Bench that the assessee has been referred to the corporate insolvency resolution process as per IBC-2016 Laws. Since no one has attended from the side of the assessee it is noticed that vide letter dated 21.03.2022 the assessee has also informed that the National Company Law Tribunal has also passed an order under section 14 of Insolvency and Bankruptcy Code, 2016 declaring moratorium, which prohibits institution of suits or any continuation of pending suits or any judgment, decree, order in any court of law, Tribunal, arbitration panel or other authority against the respondent company.

3.

We found as per the provisions of section 14 of IBC-2016 till the conclusion of proceedings under IBC-2016 no suit or proceedings can be continued against the corporate debtor. Considering the facts and circumstances and non attendance of hearing by the assessee, we are of the opinion that there is no point in proceeding with the appeals filed by the Revenue and also keeping the appeals pending is also a continuation of proceedings. Accordingly, we, considering the provisions of section 14 of IBC-2016 laws and the order of the NCLT, dismiss the appeal filed by the Revenue with the liberty to the appellant/Revenue to recall the present appeal when the occasion warrants.

4.

In the result, the appeals filed by the Revenue are dismissed.

Order pronounced in the open court on 19.07.2022.

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