FUTURISTIC METAL TRADING PVT LTD,NEW DELHI vs. ACIT CIRCLE-9(2), NEW DELHI

PDF

ITA 7182/DEL/2019Status: DisposedITAT Delhi18 December 2024AY 2010-11Bench: SHRI CHALLA NAGENDRA PRASAD (Judicial Member), SHRI BRAJESH KUMAR SINGH (Accountant Member)3 pages

AI SummaryDismissed

Facts

The assessee filed two appeals against orders of the Ld. CIT(Appeals) for assessment years 2010-11 and 2012-13. The National Company Law Tribunal (NCLT) had previously declared a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, after admitting an application filed by an operational creditor against the assessee.

Held

The Income Tax Appellate Tribunal held that the moratorium declared by the NCLT under Section 14 of the IBC, 2016, has an overriding effect over the provisions of the Income Tax Act, making parallel proceedings under the Income Tax Act impermissible. Citing precedents, the Tribunal dismissed the appeals with liberty for the assessee to file miscellaneous applications once the situation regarding the IBC proceedings is resolved.

Key Issues

Whether proceedings under the Income Tax Act can continue against an assessee when a moratorium has been declared against it under Section 14 of the Insolvency and Bankruptcy Code, 2016.

Sections Cited

Section 14 of Insolvency and Bankruptcy Code, 2016, Income Tax Act

AI-generated summary — verify with the full judgment below

Cases cited in this judgment

Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.

Pr. CIT v. Monnet Ispat & Energy Ltd.
107 Taxmann.com 481 · 2019 · SC
34 citing
Pratibha Industries Ltd. v. DCIT
142 Taxmann.com 295 · 2022
19 citing

Income Tax Appellate Tribunal, DELHI BENCH “B” NEW DELHI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Deepesh Jain, Adv. &, Shri Shaurya Jain, CA

For Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR

Hearing: 18.12.2024

आदेश /O R D E R PER C.N. PRASAD, J.M.

These two appeals are filed by the Assessee against different orders of Ld. CIT(Appeals)-34, New Delhi for the assessment years 2010-11 and 2012-13.

Ld. Counsel for the assessee inviting our attention to the order passed by National Company Law Tribunal (NCLT), Delhi Bench in CP (IB-588/ND/2023) dated 02.07.2024 submitted that the National Company Law Tribunal declared moratorium in terms of section 14 1

I.T.A.Nos.7182 & 7183/Del/2019 of the Insolvency and Bankruptcy Code 2016 and the proceedings are pending.

We have heard the rival submissions and perused the order of the National Company Law Tribunal. We observe from the order of the National Company Law Tribunal that the Tribunal declared moratorium in terms of section 14 of Insolvency and Bankruptcy Code 2016 by admitting the application filed by the operational creditor. By virtue of this moratorium, insolvency and bankruptcy code had an overriding effect over provisions of Income Tax Act and, therefore, parallel proceedings under Income Tax Act are not permissible. Similar view has been taken by the Mumbai Bench of the Tribunal in the case of Pratibha Industries Ltd. Vs. DCIT (142 taxmann.com 295). The Mumbai Bench of the Tribunal taking note of the decision of the Hon’ble Apex Court in the case of Pr.CIT Vs. Monnet Ispat & Energy Ltd. (107 taxmann.com 481) dismissed the appeals of the Revenue as well as the Assessee as the proceedings under Insolvency and Bankruptcy Code 2016 as the proceedings initiated on the assessee. Thus, the appeals filed by the assessee are hereby dismissed with the liberty to the assessee to file miscellaneous applications once the assessee is declared that it is I.T.A.Nos.7182 & 7183/Del/2019 out of the purview under this Act were of the proceedings under Insolvency and Bankruptcy Code 2016, as and when situation arises.