What did the Tribunal hold?

The tribunal noted that the issues had become academic due to an order from the National Company Law Tribunal (NCLT). The NCLT approved a resolution plan which stated that all income tax proceedings and liabilities against the assessee could not be proceeded with and no demand was enforceable.

The Income Tax Appellate Tribunal (ITAT) Hyderabad Bench heard appeals filed by both the assessee and the Revenue for various assessment years. The appeals involved common issues concerning the assessee, M/s. KSK Energy Ventures Ltd.

What were the issues?

The primary issue was whether the ongoing income tax appeals were still valid and enforceable in light of the NCLT's order approving a resolution plan for the assessee.

Ksk Energy Ventures Limited vs Addl.CIT, Range-2 | ITAT Hyderabad 2022

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD

Before: SHRI INTURI RAMA RAO & SHRI K. NARASIMHA CHARY

For Appellant: Smt. S. Sandhya, Advocate

For Respondent: Shri Rajendra Kumar, CIT-DR

Hearing: 12.10.2022Pronounced: 13.10.2022

आदेश / ORDER PER BENCH : These appeals are filed by the assessee and Revenue directed against the separate orders of Commissioner of Income Tax (Appeals)-2, Hyderabad for the Assessment Years 2010-11, 2013-14 and & 111/Hyd/2015; 1119/Hyd/2017 and 867 to 869/Hyd/2019 2014-15 to 2016-17. Since common issues are involved in all these appeals, for the sake of convenience we proceed to dispose off by this consolidated order.

Heard both the parties and perused the material on record.

At the outset, we find that the issues raised in the present appeals both by assessee and revenue have become academic as Hon’ble National Company Law Tribunal (NCLT) vide order dt.28.04.2021 in IA No.112 of 2021 in CP (IB) 675/7/HDB of 2018 disposed of the corporate Insolvency Resolution Proceedings, approving the Resolution Plan, wherein it was observed that all the income tax proceedings and liabilities initiated against the assessee cannot be proceeded with and no demand is enforceable vide para No.14(4) which reads as under :

“14(4) The Applicant shall not be responsible for any other claims, liabilities or obligations, under any guarantees, etc. payable by the Corporate Debtor as on this date to the creditors or any stakeholders & 111/Hyd/2015; 1119/Hyd/2017 and 867 to 869/Hyd/2019 including the Government dues. All the liabilities of the Corporate Debtor as on date stands extinguished, qua the Applicant.”

Therefore, the appeals filed by the assessee and revenue stand dismissed.

In the result, the appeals of assessee and Revenue are dismissed. Order pronounced in the open court on this the 13th Oct., 2022.

KSK ENERGY VENTURES LIMITED,HYDERABAD vs. ADDL.CIT, RANGE-2, HYDERABAD, HYDERABAD

What did the Tribunal hold?

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What were the issues?

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