DCIT CEN CIR 5(4), MUMBAI vs. UTTAM GALVA STEELS LTD, MUMBAI

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ITA 3698/MUM/2017Status: DisposedITAT Mumbai04 May 2022AY 2010-112 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 can continue against a corporate debtor during the pendency of insolvency proceedings as per Section 14 of the Insolvency and Bankruptcy Code, 2016. Consequently, the appeals were dismissed.

What were the facts?

The assessee, Uttam Galva Steels Ltd., was undergoing an insolvency resolution process. The Income Tax Appellate Tribunal (ITAT) was hearing appeals filed by the Dy. Commissioner of Income Tax.

What were the issues?

Whether income tax proceedings can continue against a company undergoing insolvency resolution. The applicability of Section 14 of the IBC 2016 to ongoing tax appeals.

Which sections of the Income-tax Act were involved?

Section 14 IBC 2016

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “J” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI, AM & SMT. KAVITHA RAJAGOPAL, JM

For Appellant: Shri Shashi Bekal, AR
For Respondent: Shri Sunil Kumar Jha, CIT
Hearing: 04.05.2022Pronounced: 04.05.2022
1.

These are the six appeals filed by the Dy. Commissioner of Income tax, Circle 5(4), Mumbai, (the LD AO) for A.Ys. 2007–08 to 2012–13 in case of Uttam Galva Steels Ltd.

2.

Today, at the time of hearing, the assessee preferred the application for adjournment of hearing where it has been stated that assessee is undergoing insolvency resolution process. The insolvency resolution professional has also been appointed and therefore the matters may be adjourned.

3.

We find that in view of Section 14 of IBC 2016 no proceedings can continue against the corporate debtor during the pendency of insolvency proceedings.

5.

In view of the above facts and in terms of provisions of section 14 of IBC 2016, no proceedings can continue against the corporate debtor during pendency of insolvency proceedings. Therefore, we dismiss all these six appeals filed by the learned Assessing Officer with a liberty to file application for recalling this order as soon as the insolvency proceedings are over. In view of this, all the six appeals are dismissed.

6.

In the result, all the six appeals filed by the learned Assessing Officer are dismissed.

Order pronounced in the open court on 04.05.2022.

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