ACIT CIRCLE 5(3)(1), MUMBAI vs. VARUN RESOURCES LIMITED, MUMBAI

ITA 2012/MUM/2024Status: DisposedITAT Mumbai05 July 2024AY 2012-13Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the provisions of the IBC 2016 would prevail over the Income Tax Act. Income Tax authorities have limited jurisdiction to assess/determine the quantum of tax dues but no authority to initiate recovery during a moratorium. The CIT(A) erred in not adjudicating the matter on merit simply due to the liquidation process.

What were the facts?

The appellant assessee, a limited company, engaged in ship operations, demerged and amalgamated, ceasing to exist from April 1, 2011. For AY 2012-13, it did not file a return. The Assessing Officer issued notices and made an assessment order. Penalty proceedings were also initiated. The assessee appealed to the CIT(A), who deleted the addition, citing the company's liquidation process under IBC 2016.

What were the issues?

Whether IBC provisions prevail over the Income Tax Act, and if the CIT(A) erred in not adjudicating the appeal on merit due to the company's liquidation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 142(1),Section 271(1)(C),Section 271(1)(b),Section 271F,Section 33(5),Section 14,Section 178(6),Section 238,Section 247,Section 53

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Income Tax Appellate Tribunal, ‘ F ‘ BENCH

For Appellant: Shri Haridas Bhatt
For Respondent: Shri Ankush Kapoor CIT, DR
Hearing: 02/07/2024Pronounced: 05/07/2024

PER SUNIL KUMAR SINGH (J.M):

1.

This appeal has been preferred against the impugned order dated 19.02.2024 passed by learned CIT (A) in appeal no. CIT(A) 10, Mumbai/10441/2019–20 for the Assessment Year 2012–13, wherein learned CIT(A) has partly allowed assessee‟s appeal against the assessment order dated 29.12.2019 passed u/s. 143(3) r.w.s 147 of the income tax act 1961, hereinafter referred to as an 'Act‟.

2 ITA No 2012/MUM/2024. Varun Resources Limited,

2.

The brief facts leading to the appeal state that the appellant assessee was a limited company engaged in the business of ship operation and ceased to exist on 01.04.2011 by demerging part o

The order continues below.

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