DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 1,, NASHIK vs. M/S. K.G.S SUGAR AND INFRA CORPORATION LTD,, NASHIK

Revenue has raised following grounds of appeal :

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting addition of Rs.8,77,00,245/- on account of depreciation & addition of Rs.11,69,33,660/-on account of additional depreciation ignoring the fact that the assessee company could not produce the original bills/voucher to substantiate its claim of depreciation on machinery.

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs.22,67,44,602/- made u/s 32AC(1) of the LT. Act ignoring the fact that the assessee company could not substantiate his claim regarding installation of the machinery and put to use in F.Y. 2014-15. 5. The order of the Ld. CIT(A) may be vacated and that of the Assessing Officer may be restored.”

At the outset, Ld. Counsel for the respondent-assessee submitted that pursuant to the assessee company undergoing Corporate Insolvency Resolution process under the provisions of Insolvency and Bankruptcy Code, 2016, Hon’ble National Company Law Tribunal (NCLT), Mumbai vide its order dated 11.08.2023 has approved the resolution plan submitted by Gangamai Industries and Construction Limited in favour of the Debtor Company. She further submitted that as per NCLT order dated 11.08.2023, all the dues including the statutory dues owed to the Central Government, any State or any Local Authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval u/s.31 could be continued. She further referring to the preliminary objection and clarification placed on record stated that the income-tax department has only filed claim against the M/s. KGS Sugar and Infra Corporation Ltd.

We have heard the rival contentions and perused the record placed before us. Revenue is in appeal before this Tribunal against the relief given by ld.CIT(A) deleting the addition of Rs.8,77,00,245/- on account of depreciation and deletion of addition of Rs.11,69,33,660/- on account of additional depreciation and also against the deletion of addition of Rs.22,67,44,602/- made by Assessing Officer u/s.32AC(1) of the Act.

Before us, Ld. Counsel for the respondent-assessee has filed the copy of order of the Hon’ble NCLT, Mumbai Bench dated 11.08.2023 and stated that since the only claim of the income-tax M/s. KGS Sugar and Infra Corporation Ltd.

We observe that the assessment order in the case of assessee for A.Y. 2015-16 was framed on 30.12.2017 and against the additions made by ld. AO assessee succeeded in the appeal filed before ld.CIT(A) vide order dated 07.05.2019. Revenue preferred appeal before this Tribunal vide Form No.36 dated 03.08.2019 and the copy of order of Hon’ble NCLT, Mumbai Bench is dated 11.08.2023. Under these given facts and circumstances, we deem it proper to restore all the issued raised in the instant appeal to the file of ld. Juri ictional Assessing Officer before whom assessee shall furnish the copy of order Hon’ble NCLT, Mumbai Bench dated 11.08.2023 and the same shall be examined by ld. JAO and necessary action in accordance with law shall be taken thereafter for the reason that assessee has been claiming that all the dues of the Revenue stands extinguished for the year under appeal on account of the order of NCLT dated 11.08.2023. We are therefore not adjudicating the issues raised on merit by the Revenue in the instant appeal. Needless to say, ld.JAO shall afford reasonable opportunity to the respondent-assessee. Ground of appeal raised by the Revenue are allowed for statistical purposes. M/s. KGS Sugar and Infra Corporation Ltd.

अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” बच, पुणे / DR, ITAT, “A” Bench, Pune.

गाड फ़ाइल / Guard File. आदेशानुसार / BY ORDER,