M/S HBN DAIRIES & ALLIED LTD.,NEW DELHI vs. DCIT, NEW DELHI

ITA 1356/DEL/2016Status: DisposedITAT Delhi11 October 2019AY 2010-113 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that appeals filed by the revenue were not maintainable due to the moratorium, and appeals by the assessee lacked authority from the IRP. The Tribunal is not empowered to pass orders during the moratorium period.

What were the facts?

The National Company Law Tribunal (NCLT) declared a moratorium under the Insolvency and Bankruptcy Code, 2016, and appointed an Insolvency Resolution Professional (IRP) for the assessee companies. The appeals were filed by both the revenue and the assessees.

What were the issues?

Whether appeals are maintainable before the ITAT when a moratorium has been declared under the Insolvency and Bankruptcy Code, 2016, and whether the Tribunal can pass orders during such a period.

Which sections of the Income-tax Act were involved?

Section 14 of the Insolvency and Bankruptcy Code, 2016

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

For Appellant: Shri Varun Jain, CA

For Respondent: Ms. Paramita M. Biswas, CIT DR

Hearing: 10/10/2019Pronounced: 11/10/2019

Heard together (2 matters)

ITA No. 4146/Del/2013

ITA No. 4139/Del/2013

Read from the judgment's own cause title. This page is filed under one of them.

O R D E R PER BENCH 1. These are the bunch of seven appeals filed by the parties in case of above two assessee’s namely M/s. HBN Dairies and Allied Ltd and HBN Homes Colonizer Pvt. Ltd for respective assessment years. In case of both these companies the National Company Law Tribunal has passed an order u/s 9 of Insolvency and Bankruptcy Code, 2016. The NCLT has also declared the moratorium u/s 14 of the Code and appointed Insolvency Resolution Professional for carrying out either insolvency resolution or winding up of the companies.

In view of the provisions of that section of Code, the appeals filed by the revenue are not maintainable till the resolution come to end and the appeals filed by the assessee, there is no letter of authority filed on behalf of IRP. Even otherwise the Tribunal is not empowered to pass any order in such cases because of the mandate of section 14.

In view of this, all these 7 appeals filed by the respective parties are dismissed with a liberty to both the parties to prefer the same before the coordinate bench after the completion of moratorium period. Order pronounced in the open court on 11/10/2019. -Sd/- -Sd/- (BHAVNESH SAINI) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 11/10/2019 A K Keot Page | 2

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