ASST. COMMISSIONER OF INCOME TAX, MUMBAI vs. VARUN RESOURCES LIMITED, MUMBAI

ITA 3050/MUM/2024Status: DisposedITAT Mumbai03 September 2024AY 2017-18Bench: MS PADMAVATHY S (Accountant Member), SHRI SANDEEP SINGH KARHAIL (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal observed that once a liquidation order is made or an official liquidator is appointed, no legal proceedings can be commenced or continued against the company without the court's permission, as per Section 446 of the Companies Act and Section 33(5) of the IBC. The tax demand from the AO's orders was not part of the stakeholder list as of January 22, 2024, and thus could not be recovered.

What were the facts?

The Revenue appealed against the orders of the CIT(A) who deleted additions made by the AO. The assessee company was under liquidation proceedings as per the Insolvency and Bankruptcy Code, 2016, with liquidation commencing on December 4, 2018. The AO reopened the assessment and made additions for unexplained income and undisclosed interest, which the assessee contended were unsustainable due to the liquidation status.

What were the issues?

Whether additions made by the AO are sustainable when the assessee company is under liquidation proceedings and the tax demand was not claimed by the revenue through the official liquidator.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 279,Section 33(5),Section 14,Section 53

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI SANDEEP SINGH KARHAIL, JM

For Appellant: Shri Haridas Bhatt, AR
Hearing: 29.08.2024Pronounced: 03.09.2024

Heard together (3 matters)

I.T.A. No.3052/Mum/2024
I.T.A. No.3051/Mum/2024
I.T.A. No.3050/Mum/2024

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

Per Padmavathy S, AM: These appeals by the Revenue are against the separate orders of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi [in short 'the CIT(A)'] all dated 02.04.2024 for Assessment Year (AY) 2013-14, 2015-16 & 2017-18. M/s Varun Resources Limited.

2.

The assessee is engaged in the business of ship operation and is the amalgamated (resulting) company subsequent to the merger and amalgamation M/s Varun Shipping Company Ltd. The case of the assessee was reopened and the assessment un

The order continues below.

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