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Facts
The assessee, M/s. Foremost International Pvt. Ltd., filed an appeal against an order from the Pr. Commissioner of Income Tax for the Assessment Year 2017-18. During the hearing, the Authorized Representative informed the Tribunal that an Interim Resolution Professional (IPR) had been appointed for the assessee under the Insolvency and Bankruptcy Code, 2016, and a moratorium was in effect.
Held
The Tribunal determined that due to the ongoing Corporate Insolvency Resolution Process (CIRP) and the moratorium ordered by the NCLT under Section 19 of the IBC, 2016, the appeal filed by the assessee was not maintainable. Consequently, the appeal was dismissed, with liberty granted to the Assessee/Department/IPR to file an application to recall the order if required.
Key Issues
Whether an appeal before the Income Tax Appellate Tribunal is maintainable when the assessee is undergoing Corporate Insolvency Resolution Process (CIRP) and a moratorium is in effect under the Insolvency and Bankruptcy Code, 2016.
Sections Cited
Section 19 of Insolvency and Bankruptcy Code, 2016
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Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI
Before: SHRIPRADIP KUMAR KEDIA & SHRI YOGESH KUMAR U.S.
This appeal is filed by the Assessee against the order of Learned Pr.
Commissioner of Income Tax, Faridabad [“Ld. PCIT”, for short], dated 20/03/2022for the Assessment Year 2017-18.
None appeared for the Assessee. A letter found on record filed by the Authorized Representative (for short ‘AR’) along with copy of the order of National Company Law Tribunal in CP(IB) No. 56/CHD/HRY/2019 passed u/s 19 of the Insolvency and Bankruptcy Code, 2016, informing that Page 1 of 3 Interim Resolution Professional (‘IPR’ for short) for conducting CIRP has been appointed. The ld. DR though filed a written submission on merits by relying certain judgments, however did not dispute the fact of appointing Interim Resolution Professional and also effecting the moratorium.
Considering the fact that NCLT in CP(IB) No. 56/ CHD/HRY/2019 passed an order dated 10/11/2022 u/s 19 of the Insolvency and Bankruptcy Code, 2016, the present appeal filed by the Assessee will not be maintainable. Accordingly, the appeal filed by the Assessee in is dismissed with the liberty to Assessee/Department/IPR to file application to recall the present order if so required/advised.