NAKODA LIMITED,SURAT vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, SURAT

Assessee represented by Shri Hiren Vepari, CA Respondent represented by Shri Ashok B. Koli, CIT-DR and Shri Vinod Kumar, Sr. DR Date of hearing 27/02/2023 Date of pronouncement 27/02/2023 Order under Section 254(1) of Income Tax Act PER: BENCH :

1. 1. These three appeals by the assessee are directed against separate orders of learned Commissioner of Income Tax (Appeals)-1, Surat (in short, the ld. CIT(A) dated 16/10/2017, 25/10/2017 and 20/02/2018 for the Assessment years (AY) 2013-14, 2012-13 and 2011-12 respectively.

2. The learned Authorised Representative (ld. AR) of the assessee informed that Insolvency and Bankruptcy proceeding is initiated against the assessee company by secured creditor i.e. Canara Bank has filed a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (I&B Code) before National Company Law Tribunal, Ahmedabad (NCLT). The learned NCLT has passed order on 12/07/2021 in C.P.(IB) No. ITA 377/Srt/2017 Nakoda Limited Vs ACIT & 2 Ors appeals 169/NCLT/AHM/2019 under Section 14 of I&B code. The learned NCLT has already appointed Interim Resolution Professional (IRP). And further passed a restrained order in prohibiting, institution of suit or continuation of pending suit or proceeding against corporate debtor (assessee) including execution of any judgment/decree or order in any court of law, Tribunal or Arbitration Panel or other authority.

3. The ld. AR for the assesse has already filed order of ld NCLT dated 12.07.2021 showing the fact that the assessee has been impleaded as Corporate Debtor before the Hon’ble National Company Law Tribunal (NCLT) Ahmedabad by the Financial Creditor- Canara Bank. As noted above the said petition has been admitted on 12.07.2021 by NCLT and we find NCLT had declared moratorium u/s.14 of the I&B code and has prohibited continuation of pending suits or proceedings against the assessee including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority, till the completion of the corporate insolvency resolution process or until the Bench approves the resolution plan under sub-section (1) of Section 31 of I&B Code. In the order the ld NCLT has already appointed Mr. Vikash Parekh Gupta as Interim Resolution Professional (IRP).

4. We find that ld IRP had not impleaded himself to represent the assessee-company in the present appeal, hence, in view of Section 14 of I & B code there cannot be any continuation of any pending