SHRENUJ & CO. LTD,MUMBAI vs. ASST CIT CIR 5(3)(1), MUMBAI

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ITA 1210/MUM/2017Status: DisposedITAT Mumbai17 May 2022AY 2012-135 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per Section 14 of the IBC 2016, no proceedings can be continued against a corporate debtor during the insolvency process. Therefore, the appeals filed by both the assessee and the revenue could not be proceeded with.

What were the facts?

The assessee company was undergoing Corporate Insolvency Resolution Process under the IBC 2016. The Income Tax Appellate Tribunal (ITAT) received a letter from the assessee's counsel stating this fact.

What were the issues?

Whether appeals can be continued against a corporate debtor undergoing insolvency resolution process under the IBC 2016.

Which sections of the Income-tax Act were involved?

Section 14,Section 4

AI-generated summary — verify with the full judgment below

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

Before: SHRI M. BALAGANESH & SHRI PAVAN KUMAR GADALE

For Respondent: Shri. Vinod Tamwani.DR
Hearing: 11/05/2022Pronounced: 17/05/2022

Heard together (3 matters)

I.T.A No.5352/Mum/2012
I.T.A No.473/Mum/2014
I.T.A No.32/Mum/2015

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R Per Bench:

These are the appeals filed by the assessee and for A.Y.2010-11 the revenue has filed across appeal. Against the separate orders of Deputy Commissioner of Income-tax passed u/sec 143(3) r.w.s. 144C (13) of the Income- tax Act in pursuance to the directions of the DRP u/s 144C (5) of the Income-tax Act.

2.

At the time of hearing, the Ld.DR has brought to the knowledge of the bench that a letter was received from the counsel of the assessee that the assessee has been referred to the Corporate Insolvency Resolution Process as per IBC 2016 laws. We consider it appropriate to refer the letter filed dated 11/12/2018 as under:-

3 Shrenuj & Co

4 Shrenuj & Co

3.

We found as per the provisions of Sec. 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, we are of the opinion that there is no point in proceeding with the appeals filed by the assessee and the revenue and also keeping the appeals pending is also a continuation of proceedings. We consider the provisions of section 4 of IBC-2016 Laws and the facts of filling of petition before the NCLT Mumbai by the Creditors. Accordingly, we dismiss the appeals filed by the assessee and the revenue. Further we grant the liberty to both the parties, if they so desire to move an application to recall the present order after the completion of insolvency resolution process.

4.

In the result, the appeals filed by the assessee and the revenue are dismissed.

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