DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), NEW DELHI, DELHI vs. ALLIED STRIPS LTD, DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN
PER SATBEER SINGH GODARA, JM
These Revenue’s appeals ITA Nos.18 & 19/Del/2024 for assessment years 2013-14 and 2010-11 arise against the Commissioner of Income Tax (Appeals)-26 [in short, the “CIT(A)”],
New Delhi’s order dated 25.10.2023 passed in case no.
10118/2012-13 and 10045/2009-10 involving proceedings under section 147 r.w.s. 144 and 271(1)(c) of the Income-tax Act, 1961
(hereinafter referred to as ‘the Act’), respectively.
Assessee by None
Department by Ms. Baljeet Kaur, CIT(DR)
Date of hearing
27.01.2025
Date of pronouncement
27.01.2025
ITA Nos 18 & 19/Del/2024
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Cases called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte. 3. A combined perusal of the Revenue’s instant twin appeals indicates at the outset that the learned CIT(A)’s identical detailed discussion has held the Assessing Officer’s corresponding assessment and penalty order; both dated 8th March, 2022, as not sustainable in law and in light of the National Company Law Tribunal’s order in assessee’s case(s); vide identical detailed discussion, as follows: “1.9 That in light of above judgment, it is clear that learned AO has erred in making additions and raising tax demand for AY 2013-14 on 08.03.2022. All income tax proceedings and dues for AY 2013-14 had been settled and attained finality post NCLT order and no fresh demand could be raised for such AY after 30.05.2019. Clearly, such additions are liable to be deleted.
“1.10 Reliance in this regard is placed upon decision of Honble ITAT
Delhi Bench dated 28.6.2023 in case of assessee for AY 2008-09,
2009-10, 2011-12 and 2014-15. In such case, the ITAT has held in clear terms that income tax proceedings for period prior to 30.5.2019
could not be continued after NCLT order on 30.5.2019 and quashed department appeals. The relevant extract is as follows (copy of complete order attached at Page 200-204):
"7. After taking into consideration the aforesaid facts the Bench is of the considered view that the statutory demands of the Revenue stand extinguished consequent to approval of Resolution Plan and vesting of the Management of the company in the hands of Successful Resolution Applicant. The provision of zub-section (1) of Section 31 of the 18C and judgment of Hon'ble Supreme Court relied upon by the learned AR leave no doubt that all the claims of Revenue for the period prior to institution of CIRP stand extinguished.
Moreover, in the case in hand even demands of Department have been considered, adjudicated and payments have been made to the Income-tax Department consequent to the Resolution Plan.
ITA Nos 18 & 19/Del/2024
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Consequently, appeals of Revenue are left with no merit and the same are dismissed."
That being the case, the Revenue could hardly dispute that once the tribunal has already settled the issue in assessee’s favour and against the department for the former’s liability prior to 30th May, 2019 as having got extinguished, the CIT(A)’s impugned identical findings in the instant quantum as well as penalty proceedings deserve to be confirmed in very terms. We ordered accordingly. 5. These Revenue’s twin appeals ITA No. 18 & 19/Del/2024 are dismissed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 27th January, 2025 (S. RIFAUR RAHMAN) JUDICIAL MEMBER
Dated: 27th January, 2025. RK/-