M/S.COASTAL ENERGEN PVT. LTD.,CHENNAI vs. PCIT, (CENTRAL), CHENNAI-1

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ITA 1624/CHNY/2024Status: DisposedITAT Chennai22 January 2025AY 2015-16Bench: SHRI ABY T VARKEY (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the revisionary proceedings under Section 263 were initiated during the pendency of the CIRP process, and the NCLT order provided a waiver from all proceedings. Therefore, the order passed under Section 263 was rendered infructuous.

What were the facts?

The assessee is in appeal against an order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act. The PCIT had directed the Assessing Officer (AO) to disallow certain amounts related to TDS liability. Insolvency proceedings were initiated against the assessee, and the NCLT approved a resolution plan.

What were the issues?

Whether the revisionary proceedings under Section 263 were valid when a NCLT-approved resolution plan, granting a waiver from all proceedings, was in place.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 40(a)(ia),Section 36(1)(va),Section 2(24)(X)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA

Hearing: 04.12.2024Pronounced: 22.01.2025

Years: 2015-16 M/s. Coastal Energen Private Limited, The Principal Commissioner of Shri Radhakrishnan Dharmarajan, Income Tax, Central-1, No.31, Krishna, 1st Avenue, 100ft Road, Chennai. Ashok Nagar, Chennai-600 083 [PAN: AADCC0886G] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee by : Shri Shrenik Chordia for Mr.B.Ramakrishnan,C.A प्रत्यर्थी की ओर से /Revenue by : Nilay Baran Som, CIT सुिवाई की तारीख/Date of Hearing : 04.12.2024 घोर्णा की तारीख /Date of Pronouncement : 22.01.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/REV/F/REV5/2023-1063739847(1) dated 31.03.2024 of the Learned Principal Commissioner of Income Tax [herein after “PCIT, for the assessment years 2015-16. Through the aforesaid appeal the assesse has challenged order u/s 263 dated 31.03.2024 passed by PCIT, Chennai. 2.0 The only issue arising from the six grounds of appeal raised by the assessee is regarding exercise of revisionary power u/s 263 by the Ld.PCIT, Chennai vide his order dated 31.03.2024 qua order u/s 143(3)

Page - 1 - of 3 dated 30.09.2021 directing the Ld. AO to disallow an amount of Rs.90,79,480/- u/s 40(a)(ia), of Rs.64,65,788/- u/s 36(1)(va) r.w.s 2(24)(X) and of Rs.2,51,03,631/- on account of TDS liability. It is the case of the assessee that the Ld.PCIT has clearly overlooked the facts of the present case while exercising his revisionary powers u/s 263. It was also submitted that an order u/s 143(3) w.r.t order u/s 263 dated 31.03.2024 is till pending. 3.0 At the outset, the Ld. Counsel for the assessee informed that insolvency proceedings were initiated against it in terms of an IBC application filed on 03.10.2018. It was submitted that CIRP was initiated vide NCLT order dated 04.02.2022 and NCLT had approved the resolution plan vide its order dated 30.08.2024. A copy of the impugned resolution plan was placed on record on 04.12.2024. Accordingly, the Ld. Counsel of the assessee argued that as the order u/s 263 dated 31.03.2024 of the Ld.CIT(A) is hit by the impugned NCLT approved resolution plan vide its order dated 30.08.2024, the same has become infructuous and therefore deserves to be set aside. The Ld. DR fairly conceded the impugned resolution plan dated 30.08.2024.

4.0 We have heard the rival submissions in the light of material available on records. We have noted that in point no.6 of NCLT approved resolution plan on page 125, para 6 of order dated 30.08.2024 reads as under:

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