THREE C SHELTERS P.LTD,NEW DELHI vs. ACIT, CIRCLE- 25(1), NEW DELHI

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ITA 7189/DEL/2017Status: DisposedITAT Delhi17 February 2021AY 2013-142 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeals filed by the company directors were infructuous as insolvency proceedings had commenced. The appeals were dismissed with liberty for the IRP to file fresh appeals if deemed prudent.

What were the facts?

The assessee company, Three C Shelters P. Ltd, filed appeals for AY 2012-13 and 2013-14. Subsequently, the National Company Law Tribunal (NCLT) initiated insolvency proceedings and appointed an Interim Resolution Professional (IRP).

What were the issues?

Whether appeals filed by a company undergoing insolvency proceedings are valid. The consequence of insolvency proceedings on ongoing litigation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “I-2”: NEW DELHI

Before: SHRI KULDIP SINGH & SHRI PRASHANT MAHARISHI

For Appellant: Shri Sanjiv Sapra, Adv
For Respondent: Shri M. Baranwal, Sr. DR
Hearing: 17/02/2021Pronounced: 17/02/2021

O R D E R PER PRASHANT MAHARISHI, A. M. 1. and 7189/Del/2017 are the appeals filed by the assessee Three C Shelters SP Ltd for Assessment Year 2012-13 and 2013-14 against the order of the ld ACIT, Circle- 25(1), New Delhi against the assessment order passed u/s 143(3) read with section 144C(5) of the Income Tax Act, 1961 dated 24.10.2017 for Assessment Year 2012-13 and order passed on 24.10.2017 for Assessment Year 2013-14.

2.

At the time of hearing it was submitted that National Company Law Tribunal vide order dated 16.10.2020 has initiated insolvency proceedings against the assessee and has declared moratorium till completion of such proceedings as per section 14 of Insolvency and Bankruptcy Code. NCLT has also appointed Mr. Amarpal as IRP.

3.

The ld DR also submitted that assessee cannot pursue this appeal and even if it is to be pursue this it has to be through fresh insolvency proceedings.

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