WEEWINNN TEX PROCESSORS (INDIA) PVT. LTD.,ERODE vs. DCIT, CIRCLE-1,, ERODE

Weewinn Tex Processors (India) Deputy Commissioner of Income Private Limited, Tax, No.1455, K.K.Nagar, 5th Street, Circle-1, Vasavi College Post, Erode. Bhavani, Erode, Tamil Nadu-638316. [PAN: AAACW3848B] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee by : Mr.Bhupendran, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.R.Anitha, Addl.CIT. सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 18.07.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1073959758(1) dated 04.03.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2016-17. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time.

2.0 At the out Ld Counsel for the assessee submitted that in its case the Ld CIT(A) has passed an order dated 4/3/2025 ignoring the moratorium order of NCLT passed in order bearing No. IBA /407/2020 dated 22/3/2021. It was contended that upon consideration of the order of NCLT (supra) the entire demand and the corresponding condition would become infructuous. In support of its contentions, the Ld.AR provided us with a copy of the order of Hon’ble NCLT dated 22/3/2021 as well as the NCLT approved resolution plan dated 30.05.2022. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. 4.0 We have heard the rival submissions in the light of material available on records. We have noted from the order of the Ld.CIT(A) that the impugned orders of NCLT have not been considered by the Ld.CIT(A). It is trite law that no demand survives after NCLT approved resolution plan is passed. Be that as it may be in the interest of justice we deem it appropriate to set aside the matter to the file of Ld.CIT(A) for fresh readjudication in the light of orders of NCLT (supra). While doing so, he shall give due opportunity of being heard to the assessee. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes.