M/S. SUKAM COMMUNICATION SYSTEMS PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

The above cross appeals by the assessee in are preferred against the order of the Commissioner of Income Tax [Appeals]-XII, New Delhi dated 29.10.2010 pertaining to assessment year 2005-06. The revenue has also preferred an appeal in ITA No. 3794/DEL/2010 against the order of the CIT(A)-XII, New Delhi dated 15.03.2010 pertaining to A.Y 2006-07. Since all these appeals pertain to same assessee and were heard together, we are disposing them off by this common order for the sake of convenience and brevity.

At the very outset, the ld. Counsel for the assessee placed before us the order of the National Company Law Tribunal [NCLT], Principal Bench at New Delhi in C.A 569 [PB]/2019 in Company Petition No. [IB] 540[PB]/2017 dated 03.04.2019 u/s 33(1) of the Insolvency and Bankruptcy Code, 2016 for liquidation of the corporate debtor M/s Su Kam Power Systems Limited.

We have given a thoughtful consideration to the orders of the authorities below and have perused the order of the NCLT for taking over the charge of the company. According to the provisions of section 14 of the Insolvency and Bankruptcy Code, 2016, a Moratorium had been declared and continuation of any pending suit is barred and, therefore, till the Insolvency proceedings continues, these appeals cannot be proceeded with. Therefore, in the light of the aforesaid order of the NCLT, all these appeals are dismissed.

However, in the interest of justice, we give liberty to the assessee as well as the revenue to file application for revival of these appeals as and when the Moratorium period is over or the revival of the appeals. Meanwhile, all these appeals by the assessee as well as the revenue stand dismissed.

In the result, the appeal filed by the assessee in Revenue in and 3794/DEL/2010 stand dismissed. The order is pronounced in the open court on 05.08.2019.