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Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI
ORDER PER BENCH: The above captioned four appeals by Assessee are filed against the separate orders of Learned Commissioner of Income Tax (Appeals), New Delhi [“Ld. CIT(A)”, for short], dated 15/06/2018, 24/09/2019, 22/03/2019 & 25/03/2019 for Assessment Years 2013-14, 2011-12, 2014-15.
When the matter is called for hearing, the Representative of the assessee Mr. Prem Prakash Bhagat appeared and submitted the copy of order passed by the National Company Law Tribunal (NCLT), Special Bench, New Delhi in IB-613/ND/2019 (State Bank of India vs. Shri Lal Mahal Limited).
3. The Ld. DR submitted that the NCLT, Delhi has allowed the application field by the SBI u/s 7 of Corporate Insolvency Resolution Process (CIRP) and declared moratorium against the assessee in terms of section 14 of Insolvency and Bankruptcy Code, 2016. Further brought to our notice that in view of the said order of the NCLT, the Co-ordinate Bench of the Tribunal for the AY 2010-11 Page 2 of 5
ITA No.5206/Del/2018 2861 & 2862/Del/2019 Shri Lal Mahal Ltd. vs. JCIT & DCIT in assessee’s own case, the appeal of the assessee has been dismissed in therefore, sought for dismissal of the present appeals.
We have heard the rival submissions and perused the materials available on record. The Co-ordinate Bench of the Tribunal in vide order dated 15/12/2022, considering the order passed by the NCLT, Special Bench in IB-613/ND/2019, held as under:
“3. The Ld. Sr. DR also endorsed the averments made in the e-mail of the assessee and submitted that an application for liquidation has been filed before the National Company Law Tribunal, New Delhi Bench by the Financial creditor namely State Bank of India. The application moved by SBI under section 7 of the code seeking Initiation of Corporate Insolvency Resolution Process (CIRP) which has been admitted and the Delhi Bench of NCLT by its order dated 06.04.2021 have declared moratorium in terms of section 14 of the Insolvency and Bankruptcy Code, 2016 as per para 34 of its order .
4. The Ld. Sr. DR accordingly submitted that the present appeal in such circumstances cannot be pursued in view of the overriding provisions of insolvency code but however, prayed for liberty to revive the captioned appeal as and when the moratorium period is over or revival of company takes place.
In the light of statutory provision and in the light of decision of the Hon'ble Supreme Court in the case of P CIT V. Monner Ispot and Energy Limited (2019) 107 tasmann.com 481 and also in the light of the overriding provision of the code in terms of Section 238 of the Act, the assessee is estopped to pursue the captioned appeal.
For such reasons, the appeal of the assessee is dismissed with a liberty to the assessee to seek remedial measures in accordance with law as and when the moratorium period is over or revival of the assessee company Page 3 of 5
ITA No.5206/Del/2018 2861 & 2862/Del/2019 Shri Lal Mahal Ltd. vs. JCIT & DCIT takes place. The Assessee would thus be entitled to revive the appeal on completion of moratorium in accordance with law, where it is considered expedient to do so by Assessee. 7. In the result, the appeal of the assessee stands dismissed.” 4. By respectfully following the order dated 15/12/2022 passed in for AY 2010-11 in assessee’s own case, the present captioned appeals are dismissed with a liberty to revive the appeals on completion of moratorium in accordance with law, where it is considered expedient to do so by the assessee.
In the result, the appeals in ITA Nos.
2861 & 2862/Del/2019 and are dismissed.
Order pronounced in open Court on 10th July, 2023