M/S RAJ OIL MILLS LTD.,MUMBAI vs. ACIT CENTRAL CIRCLE-6(1), MUMBAI

At the outset, it is noticed that in this case National Company Law Tribunal, Mumbai (NCLT) has passed order dated 19.04.2018 approving the resolution plan of the assessee and the petition filed u/s 10 of IBC, which has been admitted and moratorium has been passed vide order dated 19.04.2018.

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 above 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 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.