RAMANAGARAM ENTERPRISES PRIVATE LIMITED,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

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ITA 1306/HYD/2024Status: DisposedITAT Hyderabad07 November 2025AY 2018-19Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)12 pages
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What did the Tribunal hold?

The Tribunal ruled that once an NCLT-approved resolution plan under Section 31(1) of IBC, 2016, becomes binding, all pre-CIRP claims, including those of the Income Tax Department, are frozen and must be given effect as per Supreme Court precedents. The CIT(A) erred in dismissing the appeals as non-maintainable. The matter was remanded to the Assessing Officer to pass consequential orders under Section 156A of the Income Tax Act, 1961, consistent with the NCLT's resolution plan for both assessment years.

What were the facts?

The assessee, engaged in hydropower, faced additions under Section 14A during assessments for AY 2017-18 and 2018-19. Concurrently, a Corporate Insolvency Resolution Process (CIRP) under IBC, 2016, was initiated, and the NCLT approved a resolution plan that included the Income Tax Department's claim for AY 2017-18. The CIT(A) dismissed the assessee's appeals in limine, deeming them non-maintainable due to the IBC proceedings.

What were the issues?

Whether Income Tax appeals are maintainable after an NCLT-approved resolution plan under IBC, 2016, is in effect, and if the Assessing Officer is obligated to pass consequential orders giving effect to such a plan.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB,Section 143(3),Section 156A

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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : Ramanagaram Enterprises Private Limited, Plot No.18, iLabs Centre, Building 3, Software Units Layout, Madhapur – 500081, Hyderabad. 2. रधजस्व/ The Revenue : The Assistant Commissioner of Income Tax, Circle 16(1), Hyderabad / The Deputy Commissioner of Income Tax, Central Circle 2(1), Hyderabad.

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