INCOME TAX OFFICER, PARWANOO vs. MS STURDY INDUSTRIES LTD., PARWANOO
आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH
HEARING THROUGH: HYBRID MODE
ŵी लिलत कुमार, Ɋाियक सद˟ एवं ŵी कृणवȶ सहाय, लेखा सद˟
BEFORE: SHRI. LALIET KUMAR, JM & SHRI. KRINWANT SAHAY, AM
आयकर अपील सं./ ITA No. 784/Chd/ 2023
िनधाŊरण वषŊ / Assessment Year : 2017-18
The ITO
Parwanoo, H.P- 173220
बनाम
M/s Sturdy Industries Ltd.
55, Industrial Area, Sector-1
Parwanoo, H.P- 173220
˕ायी लेखा सं./PAN NO: AABCS9436Q
अपीलाथŎ/Appellant
ŮȑथŎ/Respondent
िनधाŊįरती की ओर से/Assessee by :
Shri Dhruv Goel, C.A राजˢ की ओर से/ Revenue by :
Smt. Kusum Bansal, CIT, DR
सुनवाई की तारीख/Date of Hearing :
06/03/2025
उदघोषणा की तारीख/Date of Pronouncement : 07/03/2025
आदेश/Order
PER LALIET KUMAR, JM:
This is an appeal filed by the Revenue against the order of the Ld.
CIT(A)/ NFAC, Delhi dt. 18/10/2023 pertaining to Assessment Year 2017-18. 2. At the outset it is represented by both the sides that the Corporate
Insolvency Resolution Proceedings (CIRP) is pending against the assessee and as of now, Hon'ble National Company Law Appellate Tribunal (NCLAT) is seized with the juri iction.
We have considered the issue in the light of the provisions of Insolvency and Bankruptcy Code, 2016 (“the Code”) and the decision of the Hon'ble Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; (ii) 2019 amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I&B Code has come into effect; and (iii) Consequently all the dues including the statutory dues owed to the Central Government, any State Government 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 under Section 31 could be continued.
A reading of the provisions under section 13 and 14 of the Code along with the decision in Ghanashyam Mishra And Sons (supra), clearly shows that once the proceedings have commenced by institution of application under section 7 or 9 or 10 of the Code, the continuance of the pending proceedings is prohibited and when once they reach the logical conclusion with due approval of the resolution plan by the Adjudicating Authority under sub section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. At any rate, for the time being, the present appeal cannot be proceeded with 3
during the continuance of the proceedings under the Code. However, depending upon the result of such proceedings before the adjudicating authority in respect of the corporate debtor, appropriate steps if any, may be taken by the appellant/respondent(s). We, therefore, granting leave to the appellant/respondents in the present appeal to seek the restoration of the appeal, if necessitated by the orders in the Corporate Insolvency Resolution
Proceedings, dismiss the appeal in limine. We derive support for the above proposition from the decision of the Mumbai Bench of the Tribunal in the case of Mahavir Roads & Infrastructure Pvt. Ltd., Vs. DCIT in ITA Nos. 646 to 651/Mum/2019 (AYs.2008-09 to 2013-14), dt.08/06/2022. 5. In the result, appeal of the Revenue is dismissed in limine.
Order pronounced in the open Court on 07/03/2025 कृणवȶ सहाय
लिलत कुमार
(KRINWANT SAHAY)
(LALIET KUMAR)
लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER
AG
आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :
अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File
आदेशानुसार/ By order,
सहायक पंजीकार/