DCIT, NEW DELHI vs. M/S. MAGPPIE INTERNATIONAL LTD., DELHI
Facts
The Revenue filed an appeal and the Assessee filed a cross-objection for Assessment Year 2009-10 against an order of the CIT (Appeals). During the proceedings, it was brought to the Tribunal's notice that the National Company Law Tribunal (NCLT) had imposed a moratorium under Section 14 of the Insolvency and Bankruptcy Code 2016 (IBC Code 2016) on the assessee company.
Held
The Tribunal held that, in light of the moratorium imposed by the NCLT under Section 14 of the IBC Code 2016, both the appeal filed by the Revenue and the cross-objection filed by the Assessee would not survive. Consequently, both were dismissed, with liberty granted to recall the order after the conclusion of the IBC proceedings.
Key Issues
Whether an appeal and cross-objection before the Income Tax Appellate Tribunal can proceed when a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, has been imposed on the assessee.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SH. PRADIP KUMAR KEDIA & SHRI YOGESH KUMAR U.S.
PER BENCH:
The present appeal and Cross Objection are filed by the Revenue
and the Assessee respectively for Assessment Year 2009-10 against
the order of the Ld. Commissioner of Income Tax (Appeals)-IX, New
Delhi, dated 28/10/2013.
None appeared for the assessee. The Ld. Departmental
Representative brought to our notice that vide order dated
26/02/2020 passed by National Company Law Tribunal, New Delhi
(‘NCLT’) in IB 2924/ND/2019, a Moratorium u/s 14 of the
Insolvency and Bankruptcy Code 2016 (IBC Code 2016) has been
imposed on the assessee. A copy of the order passed by the NCLT
has been made available to the Bench.
Considering the fact that the NCLT, New Delhi, has imposed
Moratorium on the Assessee Company, the present appeal filed by
the Revenue and the Cross Objection of the Assessee will not
survive. Therefore, both the Appeal filed by the Revenue and the
3 ITA No. 126 & C.O No. 234/Del/2014 DCIT Vs. Magppie International Ltd. Cross Objection filed by the Assessee are dismissed with a liberty to
the Department and the Assessee to file appropriate application if
so advised to recall this order after conclusion of the proceedings
under IBC Code, 2016 .
Order pronounced in the open court on 28th JUNE, 2024.
Sd/- Sd/- ( PRADIP KUMAR KEDIA ) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 28/06/2024 R.N, Sr. PS*
