ITO, WARD-8(2), KOLKATA, KOLKATA vs. M/S. SARGA HOTEL PVT. LTD. , KOLKATA.

ITA 665/KOL/2023Status: DisposedITAT Kolkata31 December 2025AY 2014-15Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that once a resolution plan is sanctioned under IBC, claims not part of the plan are extinguished, and the company starts with a clean slate. Therefore, the appeals become infructuous.

What were the facts?

The Revenue filed appeals against the CIT(A)'s orders for AYs 2013-14 and 2014-15. The assessee company was undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016, and a resolution plan was approved by the NCLT.

What were the issues?

Whether the Income Tax Act proceedings can continue after the approval of a resolution plan under the IBC, and if the appeals become infructuous due to the overriding effect of IBC.

Which sections of the Income-tax Act were involved?

Section 31,Section 238,Section 178(6),Section 143(3),Section 250

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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These two appeals filed by the Revenue are against the separate orders of the Commissioner of Income Tax (NFAC), Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AYs 2013-14 & 2014-15 dated 16.03.2023, which have been passed against the assessment orders u/s 143(3) of the Act, dated 29.02.2016 and 16.12.2016, respectively. Since both the appeals were heard together, they are being decided vide this common order for the sake of convenience and brevity.

1.

1 The Registry has informed that the both the appeals are delayed by 49 days. Along with

The order continues below.

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