DEPUTY COMMISSIONER OF INCOME TAX, CC-28, NEW DELHI, NEW DELHI vs. ERA INFRA ENGINEERING LTD., NOIDA, U.P

ITA 337/DEL/2024Status: DisposedITAT Delhi20 May 2024AY 2014-15Bench: SHRI C. N. PRASAD (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)5 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, relying on a previous coordinate bench order and NCLT directions, held that a moratorium under Section 14 of the IBC prohibits the institution or continuation of proceedings against the corporate debtor. Consequently, the Revenue's appeal was dismissed without delving into the merits of the case, with liberty granted to the Revenue to re-institute the appeal after the completion of the CIRP proceedings.

What were the facts?

The assessee, M/s. Era Infra Engineering Ltd., engaged in infrastructure, initially declared a loss, but a subsequent search assessment under section 153A resulted in a significantly increased income. The Revenue appealed certain reliefs granted by the CIT(A). The assessee filed a Cross Objection, arguing that the Revenue's appeal could not be instituted or continued due to a moratorium under Section 14 of the IBC, 2016, as the company had been admitted into Corporate Insolvency Resolution Process (CIRP) by an NCLT order dated 08.05.2018.

What were the issues?

Whether an appeal filed by the Revenue against an assessee, which is under a moratorium period due to Corporate Insolvency Resolution Process (CIRP) under the IBC, 2016, is maintainable.

Which sections of the Income-tax Act were involved?

Income Tax Act, 1961: Sections 143(3), Income Tax Act, 1961: Sections 132, Income Tax Act, 1961: Sections 153A, Income Tax Act, 1961: Sections 154, Insolvency and Bankruptcy Code, 2016: Sections 14, Insolvency and Bankruptcy Code, 2016: Sections 13(2), Insolvency and Bankruptcy Code, 2016: Sections 7, Insolvency and Bankruptcy Code, 2016: Sections 14(1)(a), Insolvency and Bankruptcy Code, 2016: Sections 14(1)(b), Insolvency and Bankruptcy Code, 2016: Sections 14(1)(c), Insolvency and Bankruptcy Code, 2016: Sections 14(1)(d), Securitisation and Reconstruction of Financial Assets and Enforcement of Security interest Act, 2022

AI-generated summary — verify with the full judgment below

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

Before: SHRI C. N. PRASAD & SHRI AVDHESH KUMAR MISHRA

For Appellant: Ms. Chinu Bhasin, CA

For Respondent: Ms. Nidhi Singh, CIT-DR

Hearing: 09/05/2024Pronounced: 20/05/2024

Heard together (2 matters)

ITA No.337/Del/2024

C.O. No. 28/Del/2024

Read from the judgment's own cause title. This page is filed under one of them.

PER AVDHESH KUMAR MISHRA, AM

This appeal of the Assessment Year 2014-15, preferred by the appellant/Revenue, challenges the order dated 08.11.2023, of the Commissioner of Income Tax (Appeals)-30, New Delhi [In short, the ‘CIT(A)’]. The assessee filed Cross Objection to this appeal.

The relevant facts, in brief, are that the assessee, a company, engaged in the bu

The order continues below.

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