OSIAN CONNOISSEURS OF ART P. LTD.,MUMBAI vs. ASST. CIT CC-11, MUMBAI

The aforesaid appeal has been filed by the assessee against the order dated 20.10.2020, passed by Ld. CIT (Appeals)-48, Mumbai for the quantum of assessment passed u/s 143(3) for the Oscian Connoisseurs of Art Pvt. Ltd. AY 2011-12. Assessee has raised the ground on account of disallowance of Rs. 10,81,61,095/-.

From the perusal of relevant documents as well as impugned order, it is seen that there is a letter filed on behalf of assessee that IDBI bank, one of the lenders to the company, had filed petition before the NCLT under the IBC Code and NCLT has accepted the application of the bank and appointed an Interim Resolution Professional (IRP) and the board of directors have been superseded. NCLT has imposed the moratorium u/s 14 IBC.

Once, NCLT has imposed the moratorium u/s 14 IBC, then no proceedings can be initiated against the corporate debtor that is, assessee company including the present proceedings before this Tribunal or any Income Tax proceedings. 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 Oscian Connoisseurs of Art Pvt. Ltd. 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.

In the result, the appeals filed by the assessee is dismissed in limini.