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Facts
The assessee, Jaiprakash Associates Ltd., filed appeals against CIT(A) orders for AYs 2011-12 & 2012-13. During the hearing, it was brought to the Tribunal's attention that a Corporate Insolvency Resolution Process (CIRP) had been initiated against the company, and a moratorium under Section 14 of the IBC, 2016, was in effect.
Held
The Tribunal, acknowledging the moratorium, dismissed both appeals as infructuous. It granted the assessee liberty to revive the appeals after the insolvency proceedings conclude by making an application to the Bench.
Key Issues
Can appeals against a corporate debtor proceed when a moratorium under the Insolvency and Bankruptcy Code, 2016, is in effect?
Sections Cited
Section 250 of Income Tax Act, 1961, Section 143(3) of Income Tax Act, 1961, Section 14 of Insolvency and Bankruptcy Code, 2016
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: SHRI G. S. PANNU & MS. MADHUMITA ROY
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI BEFORE SHRI G. S. PANNU, VICE PRESIDENT AND MS. MADHUMITA ROY, JUDICIAL MEMBER & 3878 /Del/2018 (Assessment Years : 2011-12 & 2012-13) Jaiprakash Associates DCIT Ltd. Circle – 1 Sector – 128, Noida Noida UP – 201 304 PAN: AABCB 1562 A .. (Respondent) (Appellant) Appellant by : Shri Ashwani Kumar Garg, Adv. Respondent by : Ms. Rishpal Bedi, CIT-D.R. Date of Hearing 01.07.2024 Date of Pronouncement 05.07.2024 O R D E R PER MS. MADHUMITA ROY – JUDICIAL MEMBER :
Both the appeals filed by the assessee are directed against the orders both dated 28.02.2018 passed by the Commissioner of Income Tax (Appeals)-I, Noida under Section 250 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) arising out of the orders dated 30.03.2014 and 31.03.2015 passed by the Learned AO, DCIT, Central &n 3878/Del/2018 Jaiprakash Associates Ltd. vs. DCIT Asst.Year :2011-12 - 2 - Circle – II, Lucknow and ACIT, Central Circle-II, Lucknow under Section 143(3) of the Act for Assessment Years 2011-12 & 2012-13 respectively.
Since both the matters relate to the same assessee, these are heard analogously and are being disposed of by this common order.
At the very threshold of the matters, it was submitted by the Learned AR that a Corporate Insolvency Resolution Process (CIRP) has been initiated in respect of the assessee company by and under the order dated 03.06.2024 passed by the Hon’ble National Company Law Tribunal (NCLT), Allahabad under the Insolvency and Bankruptcy Code, 2016 (in short ‘said Code’). Pursuant to the said order a moratorium has come into effect from 03.06.2024. In terms of the Section 14 of said Code, the Adjudicating Authority declares moratorium for prohibiting the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority. He thus, prays for stay our hands in the matter.
Having regard to the above facts, we, thus, dismiss the appeals as infructuous. However, liberty is granted to the assessee to revive the &n 3878/Del/2018 Jaiprakash Associates Ltd. vs. DCIT Asst.Year :2011-12 - 3 - appeals by making application to that effect before the Bench after the Insolvency proceeding is over, if so advised.
In the result, both the appeals of the assessee are dismissed as infructuous.
This Order pronounced in Open Court on 05/07/2024