M/S VARUN RESOURCES LIMITED ,MUMBAI vs. COMMISSIONER OF INCOME TAX (APPEAL)-CIRCLE 5(3)(1), MUMBAI

ITA 4518/MUM/2023Status: DisposedITAT Mumbai27 May 2024AY 2017-18Bench: the NCLT during the course of assessment proceedings. Notice was issued to the liquidator Mr. Sanjeev Maheshwari but for no avail. It was learnt that assessee under reported income as Rs 34,06,89,638/- as per order dated 31 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the provisions of the Insolvency and Bankruptcy Code (IBC), 2016, override the Income Tax Act. Income tax authorities can determine tax dues but cannot initiate recovery during moratorium without court leave.

What were the facts?

The assessee company, under liquidation, was levied a penalty under Section 270A of the Income Tax Act. The CIT(A) dismissed the assessee's appeal, stating it was not maintainable due to the liquidation process.

What were the issues?

Whether IBC provisions prevail over the Income Tax Act regarding proceedings against a company in liquidation, and whether the CIT(A) erred in not adjudicating the penalty on merits.

Which sections of the Income-tax Act were involved?

Section 270A,Section 178(6),Section 238

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Income Tax Appellate Tribunal, ‘ F ‘ BENCH

For Appellant: Shri Haridas Bhatt
For Respondent: Shri Ankush Kapoor CIT, DR
Hearing: 01/05/2024Pronounced: 27/05/2024

PER SUNIL KUMAR SINGH (J.M):

1.

This appeal has been preferred against the impugned order dated 30.10.2023 passed by learned CIT (A) in appeal no. ,NFAC/2016–17/10057982, for the Assessment Year 2017–18, wherein learned CIT(A) has dismissed assessee’s appeal against the penalty order

2 ITA No. 4518/MUM/2023. M/s. Varun Resources Limited, dated 12.08.2021 passed under section 270 A of the income tax act 1961, hereinafter referred to as an 'Act’. On account of under reporting its income within the meaning of Section 270A(2) of the Act.

2.

The brief facts leading to the appeal state that the assessee filed its return of income electronically

The order continues below.

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