AERENS JAI REALTY PVT. LTD.,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 9, NEW DELHI

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ITA 6678/DEL/2017Status: DisposedITAT Delhi19 July 2023AY 2011-123 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 acknowledged that Section 238 of the Insolvency and Bankruptcy Code, 2016, has an overriding effect over other statutes, including the Income-tax Act. Therefore, all claims, including those of the Income-tax Department, are to be entertained by the Official Liquidator.

What were the facts?

The assessee's appeals were filed against the orders of the CIT(A). The National Company Law Tribunal (NCLT) had appointed an Insolvency Resolution Professional, and the assessee's counsel stated they were not pressing the appeals.

What were the issues?

Whether the provisions of the Insolvency and Bankruptcy Code, 2016, override the Income-tax Act, 1961, in cases of insolvency proceedings.

Which sections of the Income-tax Act were involved?

Section 238

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

For Appellant: Shri Vivek Bansal, Advocate
For Respondent: Shri P. Praveen Sidharth, CIT DR
Hearing: 17.07.2023

Order : 19.07.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : These appeals filed by the assessee are directed against the respective orders of ld. CIT (A) pertaining to respective assessment years. 2. At the outset, ld. Counsel of the assessee submitted that National Company Law Tribunal (NCLT) vide order dated 30.05.2023 has passed directions by appointing Shri Prabhakar Kumar as the Insolvency Resolution Professional under the provisions of the Insolvency and pressing the appeals.

3.

We have heard both the parties and perused the records.

4.

Provisions contained under section 238 of “the Code” are having an overriding effect over all other Central and State statutes including Income-tax Act as held by Hon’ble Supreme Court in case of PCIT vs. Monnet Ispat and Energy Ltd. SLP (C) No.6483 of 2018 order dated 10.08.2018 by returning following findings :- “Given section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income-tax Act.”

5.

In view of the matter, section 238 of the Code will have overriding effect over all other Central and State statutes including the Income-tax Act and all the claims including claim of the Income-tax Department under the Income-tax Act, 1961 shall be entertained by the Official Liquidator u/s 53 (1) of the Code. Keeping in view all these facts, ld. AR for the assessee stated at Bar that he does not press these appeals and same may be dismissed as withdrawn. Consequently, present appeal is dismissed as withdrawn having been become infructuous. Order pronounced in the open court on this 19th day of July, 2023. Sd/- sd/- (YOGESH KUMAR US) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 19th day of July, 2023/TS

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