ITO WARD-14(3), NEW DELHI vs. KLM HOLDINGS PVT. LTD., NEW DELHI

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ITA 8252/DEL/2019Status: DisposedITAT Delhi30 July 2024AY 2014-15Bench: us that the National Company Law Tribunal, New Delhi Bench passed an order dated 06.12.2023 on a petition filed by BCL Enterprises Ltd. against the assessee under Section 7 of IBC, 2016 for default in repayment of loan sanction of Rs.1,10,00,000/- by the BCL Enterprises Ltd. to the assessee before us and the amount of the Corporate Debtors has been declared NPA w.e.f 04.07.2023 wherein the total due and payable of the Corporate Debtor to the said financial creditor of Rs.1,14,52,840/- as on3 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, acknowledging the NCLT's moratorium, decided to consign the revenue's appeal to records. It granted liberty to the revenue to revive the appeal after the NCLT proceedings are completed, as the continuation of proceedings against the respondent is prohibited.

What were the facts?

During the appeal by the revenue, it was brought to the Tribunal's attention that the NCLT had initiated Corporate Insolvency Resolution Process (CIRP) against the assessee for default on a loan of Rs. 1.10 Crore. A moratorium under Section 14 of IBC, 2016, was in effect, prohibiting the continuation of pending proceedings against the assessee.

What were the issues?

Can an Income Tax Appellate Tribunal appeal proceed against an assessee when the Corporate Insolvency Resolution Process (CIRP) has been initiated and a moratorium under IBC, 2016 is in place?

Which sections of the Income-tax Act were involved?

Section 7 of IBC, 2016, Section 7(6) of IBC, 2016, Section 14 of IBC, 2016

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘C’: NEW DELHI

For Appellant: Ms. Parul Singh, Adv

For Respondent: Shri Abhu Dash

Hearing: 27/06/2024Pronounced: 30/07/2024

ORDER PER MADHUMITA ROY, JM:

At the time of instant appeal, the ld. Counsel appearing for the assessee submitted before us that the National Company Law Tribunal, New Delhi Bench passed an order dated 06.12.2023 on a petition filed by BCL Enterprises Ltd. against the assessee under Section 7 of IBC, 2016 for default in repayment of loan sanction of P a g e | The ITO, Ward 14(3) Vs. M/s KLM Holdings Pvt. Ltd. Rs.1,10,00,000/- by the BCL Enterprises Ltd. to the assessee before us and the amount of the Corporate Debtors has been declared NPA w.e.f 04.07.2023 wherein the total due and payable of the Corporate Debtor to the said financial creditor of Rs.1,14,52,840/- as on 04.07.2023. By the said order the application has been admitted in view of the provision of Sec. 7(6) of IBC, 2016 and CIRP qua CD stood commenced. Further that in view of the moratorium as provided under Section 14 of IBC, 2016, the continuation of pending suits or proceedings against the respondent therein before any Court of Law/Tribunal/Arbitration Panel and other authority are prohibited.

Having regard to this particular aspect of the matter we, therefore, consign to records the appeal preferred by the revenue with liberty to revive the same upon making further application after the proceeding before the NCLT are completed, if so advised in law.

In the result, for the statistical purposes the appeal of the revenue is dismissed.

Order pronounced in the open court on 30.07.2024

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