ACIT, CIKRCLE-7(2), NEW DELHI vs. DION GLOBAL SOLUTIONS LTD., NEW DELHI

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ITA 6865/DEL/2018Status: DisposedITAT Delhi28 June 2023AY 2013-142 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 noted that the matter had reached the NCLT, and a moratorium was imposed under the Insolvency and Bankruptcy Code. Therefore, the appeal was dismissed as infructuous, with liberty to the department to approach the Tribunal after NCLT proceedings conclude.

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of an addition made by the AO under Section 92CA. The assessee is in the software development business and had declared income, but the AO made a significant addition.

What were the issues?

Whether the appeal filed by the Revenue is maintainable given the moratorium under the Insolvency and Bankruptcy Code. The primary issue is the impact of insolvency proceedings on the tax appeal.

Which sections of the Income-tax Act were involved?

Section 92CA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘I’, NEW DELHI

Before: Sh. Kul BharatDr. B. R. R. Kumar

Hearing: 14.06.2023Pronounced: 28.06.2023

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the Revenue against the order of ld. CIT(A)-44, New Delhi dated 21.08.2018.

2.

Following grounds have been raised by the Revenue:

“1. Ld. Commissioner of Income Tax (Appeals) erred in law and on the facts of the case in deleting the addition of Rs.4,72,06,735/- made by the AO on account of adjustment u/s 92CA of the Income Tax Act, 1961.”

3.

The assessee company is engaged in the business of providing software development licensing and support services to financial institutions, stockbrokers and financial services companies. The assessee filed return of income on 27.11.2013 declaring income at Rs.1,72,61,239/-. The Assessing Officer

Dion Global Solutions Ltd. completed the assessment by making an addition of Rs.6,88,52,221/- and determining the taxable income at Rs. Nil after giving effect to the brought forward losses.

4.

The matter has reached the NCLT, Principal Bench, New Delhi in IB-2695(ND)/2019 wherein the Tribunal has admitted the application in terms of Section 7 of Insolvency and Bankruptcy (IBC), 2016 moratorium as envisaged under the provisions of Section 14(1) of IBC. Hence, the present appeal is liable to be dismissed as infructuous. The department at liberty to approach the Tribunal after conclusion of the proceedings before the NCLT.

5.

In the result, the appeal of the Revenue is dismissed for statistical purpose. Order Pronounced in the Open Court on 28/06/2023.

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