DILIP CHHABRIA PVT LTD.,MUMBAI vs. DY CIT 9 (3)(1), MUMBAI

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ITA 7342/MUM/2019Status: DisposedITAT Mumbai28 April 2022AY 2012-133 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 moratorium period. Therefore, the appeal filed by the assessee was dismissed.

What were the facts?

The assessee filed an appeal against an order of the CIT(A). During the hearing, it was brought to the tribunal's attention that the assessee had been referred to Corporate Insolvency Resolution Process under the IBC-2016.

What were the issues?

Whether proceedings can continue against a corporate debtor undergoing insolvency resolution under the IBC-2016.

Which sections of the Income-tax Act were involved?

Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI PAVAN KUMAR GADALE & SHRI GAGAN GOYAL

Hearing: 12.04.2022Pronounced: 21.04.2022

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER (A.Y: 2012-13) Dilip Chhabria Designs Vs. DCIT – 9(3)(1) Pvt Ltd., Aayakar Bhavan, Keytuo Chemical MK Road, Compound, Road No. 5 Mumbai-400020 Kondivita Vil MIDC, Andheri (E), Mumbai – 400059 PAN/GIR No. : AAACD7823M Appellant .. Respondent Appellant by : None Respondent by : Mr.T. Shankar.CIT.DR Date of Hearing 12.04.2022 Date of Pronouncement 21.04.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM:

The assessee has filed the appeal against the order of Commissioner of Income Tax (Appeals)-16, Mumbai passed U/sec143(3) and 250 of the Act.

Dilip Chhabria Design Pvt Ltd., Mumbai. - 2 -

2.

At the time of hearing, the Ld.DR 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. Further the order passed by the National Company Law Tribunal (NCLT), Mumbai dated 17.09.2019 was brought on record.

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 appeal filed by the assessee and the pending is also a continuation of proceedings.

4.

Accordingly, we considering the provisions of section14 of IBC-2016 Laws and the order of the NCLT dismiss the appeal filed by the assessee. Further we grant the liberty to the assessee to move an application

Dilip Chhabria Design Pvt Ltd., Mumbai. - 3 - to recall the present order after the moratorium is over as per the provisions of IBC-2016 laws.

5.

In the result, the appeal filed by the assessee is dismissed.

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