ADDL. CIT, SPECIAL RANGE-4 vs. MOSSER INDIA LTD.,

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ITA 1568/DEL/2001Status: HeardITAT Delhi03 May 2023AY 1996-19973 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that in similar cases involving the assessee and in light of the Insolvency and Bankruptcy Code, 2016, the Revenue's claim has become infructuous. Therefore, the appeal and cross-objection were dismissed without adjudicating on merits.

What were the facts?

The Revenue appealed against an order concerning a penalty levied under Section 271(1)(c). The assessee company has since gone into liquidation, and its Corporate Insolvency Resolution Process is pending. This fact was brought to the Tribunal's attention by the assessee's representative.

What were the issues?

Whether the appeal and cross-objection are rendered infructuous due to the assessee company's liquidation and the overriding effect of insolvency proceedings.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

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

Before: SH. N.K.BILLAIYA & SH.ANUBHAV SHARMA

For Respondent: Ms. Raja Rajeshwari R., Sr. DR
Hearing: 26.04.2023Pronounced: 03.05.2023

Heard together (2 matters)

ITA No. 1568/Del/2001
CO. No. 112/Del/2005

Read from the judgment's own cause title. This page is filed under one of them.

The appeal has been preferred by the Revenue against the order dated 20.01.2007 of CIT(A)-XXI, New Delhi (hereinafter referred as 1568.Del.2001 Moser India Ltd.

Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No. 156/2000-2001 and Cross objection has raised by assessee.

2.

Heard and perused the record.

3.

Adjournment application has been moved on behalf of the revenue by Ld. Sr. DR. However, the Ld. AR submitted that the appeal has become infructuous in the light of fact that the assessee company has gone under liquidation. Citing certain orders of Supreme Court of India, Hon’ble High Court and the Co-ordinate Bench of Delhi in regard to the case of assessee it was submitted that it is now consistently held that as a liquidation proceedings have over riding effect over the claim of the revenue, the appeals of the assessee or revenue have become non- consequential. Ld. DR however submitted that the matter may be kept under abeyance.

4.

It can be appreciated that the present appeal arises out of the challenge of penalty levied u/s 271(1)(c) of the Income Tax Act. The assessee is not appearing and the Ld. AR is representing the liquidation authority. The record shows corporate Insolvency Resolution Process is pending before NCLT after order dated 14.11.2017.

5.

In assessee’s own case Hon’ble Supreme Court while deciding Civil Appeal no. 4705/2014 vide order dated 21.07.2020, Hon’ble Delhi High Court disposing of vide order dated 16.03.2022, ITA no. 1204/2018 vide order dated 16.03.2022, ITA No. 70/2020, 76/2020, 80/2022 vide order dated 22.09.2022 and a co-ordinate Bench vide ITA No. 4995.Del.2016 order dated 17.03.2021, disposed of the appeals without adjudicating anything on merits.

1568.Del.2001 Moser India Ltd.

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