ACIT,, CHANDIGARH vs. M/S WINSOME YARN LTD.,, CHANDIGARH

ITA 31/CHANDI/2010Status: DisposedITAT Chandigarh19 March 2026AY 2006-07Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Income Tax Appellate Tribunal held that, in light of the moratorium under Section 14 of the IBC and the overriding effect of Section 238 of the Code, the present appeals against the assessee could not continue. Consequently, all appeals were dismissed as non-maintainable, with a provision for either party to seek revival if circumstances change in the future.

What were the facts?

The assessee, M/s Winsome Yarns Ltd., is undergoing Corporate Insolvency Resolution Process (CIRP) before the Hon'ble National Company Law Tribunal (NCLT). A moratorium has been declared under Section 14 of the Insolvency & Bankruptcy Code, 2016, prohibiting the initiation or continuation of suits and proceedings against the corporate debtor, as confirmed by the Resolution Professional.

What were the issues?

Whether income tax appeals against a corporate debtor can proceed when a Corporate Insolvency Resolution Process (CIRP) and a moratorium under the Insolvency & Bankruptcy Code, 2016, are in effect.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961, Insolvency & Bankruptcy Code, 2016: Section 7, Insolvency & Bankruptcy Code, 2016: Section 14, Insolvency & Bankruptcy Code, 2016: Section 17, Insolvency & Bankruptcy Code, 2016: Section 238

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

ITA No.646/CHANDI/2008
ITA No.1232/CHANDI/2009
ITA No.571/CHANDI/2019
ITA No.31/CHANDI/2010
ITA No.886/CHANDI/2019

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

1

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकर अपील सं./ ITA No.646/CHANDI/2008 (िनधा"रण वष" / Assessment Year: 2005-06) & 2. आयकर अपील सं./ ITA No.1232/CHANDI/2009 (िनधा"रण वष" / Assessment Year: 2006-07) & 3. आयकर अपील सं./ ITA No.571/CHANDI/2019 (िनधा"रण वष" / Assessment Year: 2015-16) M/s Winsome Yarns Ltd. Addl. CIT / ACIT [Circle 4(1)] SCO 191-192, Sector – 34, बनाम/ Vs. Range 4, Chandigarh Chandigarh "ायीलेखासं./जीआइआरसं./PAN/GIR No. AAACW-1911-H (अपीलाथ"/Appellant) : (""थ" / Respondent) & 4. आयकर अपील सं./ ITA No.31/CHANDI/2010 (िनधा"रण वष" / Assessment Year: 2006-07) & 5. आयकर अपील सं./ ITA No.886/CHANDI/2019 (िनधा"रण वष" / Assessment Year: 2015-16) DCIT / ACIT [Circle 4(1)] M/s Winsome Yarns Ltd. बनाम/ Vs. Range-4, Chandigarh SCO 191-192, Sector – 34, Chandigarh "ायीलेखासं./जीआइआरसं./PAN/GIR No. AAACW-1911-H (अपीलाथ"/Appellant) : (""थ" / Respondent) Assessee by : Sh. Ishant Jain (RP) – Ld. AR (Virtual Mode) Revenue by : Dr. Vivek Aggarwal (CIT) & Dr. Ranjit Kaur (Addl. CIT) - Ld. DRs

सुनवाईकीतारीख/Date of Hearing : 17-03-2026 घोषणाकीतारीख /Dat

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