HI TECH GRAIN PROCESSING PVT LTD IN LIQUIDATION ,DELHI vs. DCIT,CENTRAL CIRCLE-1, DELHI

ITA 1581/DEL/2025Status: DisposedITAT Delhi29 August 2025AY 2022-23Bench: MS. MADHUMITA ROY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the initiation of proceedings during the liquidation process and moratorium period is illegal and unsustainable as per the Insolvency and Bankruptcy Code, 2016. The assessment order was considered void ab initio and quashed.

What were the facts?

The assessee company, Hi Tech Grain Processing Private Limited, was undergoing liquidation. The Assessing Officer reopened the case and made additions for accommodation entries. The assessee argued that initiation of proceedings during the liquidation process and moratorium period under the Insolvency and Bankruptcy Code, 2016 was illegal.

What were the issues?

Whether the initiation of assessment proceedings against a company under liquidation and during a moratorium period under the IBC, 2016 is legally permissible.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 143(3),Section 139,Section 148,Section 142(1),Section 14,Section 33(5)

AI-generated summary — verify with the full judgment below

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

Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA

Hearing: 11.08.2025Pronounced: 29.08.2025

PER MADHUMITA ROY, JM:

Both the appeals filed by the assessee are directed against the orders both dated 17.01.2025 passed by the Ld. Commissioner of Income Tax (Appeals)-23, Delhi against the assessment orders passed under Section 147 r.w.s 144 and 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) for Assessment Years 2013-14 and 2022-23. 2. The initiation of proceedings by the Ld. Assessing Officer during the pendency of liquidation process before the NCLT is illegal and barred by law and liable to b

The order continues below.

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