ACIT, CC- 1, NEW DELHI vs. AMRAPALI ZODIAC DEVELOPERS PVT. LTD., NEW DELHI

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ITA 4368/DEL/2017Status: DisposedITAT Delhi08 April 2021AY 2010-114 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 the corporate debtor (assessee) due to the insolvency proceedings. Section 238 of the Code overrides other statutes, including the Income-tax Act, and all claims must be dealt with under the Code.

What were the facts?

The appeals were filed by both the Revenue and the assessee concerning the Amrapali Group. It was brought to the Tribunal's notice that the Amrapali Group is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.

What were the issues?

Whether income tax proceedings can continue against a corporate debtor undergoing insolvency proceedings. The applicability of the Insolvency and Bankruptcy Code over the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 14,Section 238

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

Before: SHRI KULDIP SINGH & SHRI B.R.R. KUMAR

Hearing: 08.04.2021

PER BENCH :

1.

Aforesaid appeals have been filed by the Revenue and the assessee challenging the impugned orders passed by the ld. CIT (A) pertaining to Amrapali Group.

2.

During the hearing, it has come on record by virtue of the order dated 17.03.2021 passed by the coordinate Bench of the Tribunal in 1949, 1950 & 1951/Del/2017 in ACIT vs. M/s. Amrapali & Silicon Pvt. Ltd. & other appeals that Amrapali Group to which these appeals belong has gone into insolvency proceedings in Insolvency and Bankruptcy Code, 2016 (for short ‘the Code’).

3.

In view of the matter, we are of the considered view that since Amrapali Group is already undergoing insolvency proceedings under the Code in which resolution professionals have already been appointed, no proceedings can continue against the corporate debtor i.e. assessee under section 14 of the Code.

Likewise, section 238 of the Code will have overriding effect on all other Central and State statutes including the Income-tax Act and all the claims including claim of the assessee as well as Revenue Department shall be entertained in accordance with the Code.

Consequently, all the aforesaid appeals filed by the Revenue and assessee are hereby dismissed with liberty to the Revenue as well resolution process under the Code. Order pronounced in open court on this 8th day of April, 2021 after the conclusion of the virtual hearing.

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