ASSTT. CIT CENTRAL CIR-1(3), MUMBAI vs. M/S. PANDHE INFRACONS P. LTD., MUMBAI

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ITA 1986/MUM/2020Status: DisposedITAT Mumbai25 April 2022AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per Section 14 of the IBC, proceedings against a corporate debtor cannot continue once the matter is under the purview of a resolution professional. Therefore, the appeals were dismissed.

What were the facts?

The appeals arose from an assessment order passed under Section 153A read with Section 143(3) of the Income Tax Act. An interim resolution professional was appointed for the assessee under the Insolvency and Bankruptcy Code, 2016.

What were the issues?

Whether proceedings before the ITAT can continue against a corporate debtor undergoing insolvency resolution under the IBC. The applicability of Section 14 of the IBC to pending appeals.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C‘ BENCH

For Respondent: Shri Sunil A Umap
Hearing: 21/04/2022Pronounced: 25/04/2022

आदेश / O R D E R PER M. BALAGANESH (A.M):

1.

These cross appeals in 1812/Mum/2020 for A.Y.2011-12 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-47, Mumbai in appeal No.CIT(A)- 47/10180/18-19 dated 18/03/2020 (ld. CIT(A) in short) against the order of assessment passed u/s.153A r.w.s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 30/12/2018 by the ld. Dy. Commissioner of Income Tax, Central Circle-1(3), Mumbai (hereinafter referred to as ld. AO).

2.

None appeared on behalf of the assessee. At the outset, we find that an interim resolution professional has been appointed under the provisions of Insolvency and Bankruptcy Code, 2016 (IBC) by the Hon’ble National Company Law Tribunal (NCLT) vide its order dated 06/09/2021 in the instance case. On earlier occasions, this Tribunal taking note of the same had served the notice on the interim resolution professional. Subsequently, Mr. Brijendra Kumar Mishra was appointed as resolution professional vide meeting of Company of Creditors (COC) dated 02/12/2021. As per Section 14 of the IBC 2016, there cannot be any continuation of proceedings before this Tribunal against the corporate debtor. Admittedly, the assessee herein is a corporate debtor. Hence, no proceedings shall remain pending with this Tribunal in respect of this assessee once the matter is under the purview of resolution professional. In view of the same, we dismiss the appeal of the assessee and also dismiss the appeal of the Revenue, with a liberty given to both the parties to revive these appeals, if they so desire, after the completion of insolvency resolution process. Accordingly, the appeal of the assessee is dismissed and appeal of the Revenue is dismissed.

3.

In the result, appeal of the assessee and appeal of the Revenue is dismissed.

Order pronounced on 25/04/2022 by way of proper mentioning in the notice board.

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