DCIT,CIRCLE-2(1), KOLKATA vs. M/S. AMRIT HATCHERIES(P)LTD, KOLKATA

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ITA 1720/KOL/2019Status: DisposedITAT Kolkata28 May 2024AY 2015-16Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey (Judicial Member)3 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the NCLT's order for corporate insolvency process renders the revenue's appeal not maintainable. All litigation involving the assessee ceases, and liabilities to the government are extinguished.

What were the facts?

The revenue filed an appeal against the assessee for AY 2015-16. During the hearing, it was submitted that the assessee company had gone into liquidation and an official liquidator was appointed by the National Law Company Tribunal (NCLT).

What were the issues?

Whether an appeal filed by the revenue is maintainable when the assessee company is undergoing liquidation proceedings and an official liquidator has been appointed.

Which sections of the Income-tax Act were involved?

Section 9 of Insolvency and Bankruptcy Code, 2016

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey]

13.05.2024 Date of Hearing / सुनवाई क( �त*थ Date of Pronouncement/ 28.05.2024 आदेश उ-घोषणा क( �त*थ For the Appellant/ None �नधा34रती क( ओर से For the Respondent/ Shri Sanjay Mukherjee, CITDR राज�व क( ओर से ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-22, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 30.04.2019 for the AY 2015-16.

2.

At the time of hearing when the appeal was called up for hearing no one was present on behalf of the assessee to argue the case. The ld. CITDR submitted before the Bench that in the impugned case the assessee company has gone into liquidation and National Law Company Tribunal, Kolkata Bench vide order dated 25.02.2020 has Assessment Year: 2015-16 M/s Amrit Hatcharies Pvt. Ltd. already passed the order appointing official liquidator and therefore the case may be decided accordingly.

3.

With the assistance of Ld. D.R, we have perused the facts on record including the decision of NCLT, Kolkata vide order dated 25.02.2020. We find from the said decision that application u/s 9 of Insolvency and Bankruptcy Code, 2016 (in short I& B Code) read with Rule 6 of Insolvency and Bankruptcy Code (application to adjudicating authority) Rules, 2016 for initiation of corporate insolvency process against the assessee. In view of the said order of NCLT, the appeals of the revenue before us becomes not maintainable as all the litigation against or by the impugned assessee shall come to an end and all the dues/liability owed to Central Government by way of tax duty or any other cess would be extinguished. Accordingly we are inclined to dismiss the appeal of the revenue.

4.

In the result, the appeal of the revenue is dismissed.

Order is pronounced in the open court on 28th May, 2024

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