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2022 (7) TMI 1343 - AT - Income TaxAssessment order passed u/s 143(3) r.w.s. 142(2A) - admission of Company Petition under Insolvency and Bankruptcy Code, 2016 - HELD THAT - The appeal filed by the assessee in the present circumstances, cannot be proceeded with, as revenue has also not sought any permission by the committee of creditors. Till the completion of moratorium period or upon the revival of corporate debtor as per the resolution plan approved by the adjudicating authority, the appeals filed by the assessee are treated as dismissed in limine. However, liberty is given to the parties to revive /restitute all the aforesaid appeals after the moratorium period expires or as approved by the adjudicating authority. As in view the decision in the case of Mahavir Roads Infrastructure Pvt.Ltd 2022 (6) TMI 1294 - ITAT MUMBAI this appeal filed by the assessee is treated as dismissed in limine. Liberty, however, is given to the parties to revive/restitute this appeal after the moratorium period expires or as approved by the adjudicating authority. Appeal filed by the assessee is dismissed.
Issues:
1. Appeal against the order of Ld. Commissioner of Income-tax (Appeals)-2, Ahmedabad. 2. Impact of Insolvency and Bankruptcy Code, 2016 on ongoing proceedings. 3. Application of moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016. 4. Dismissal of appeal based on the decision of a Co-ordinate Bench. Issue 1: Appeal Against CIT(A) Order The appeal was filed against the order of the Ld. Commissioner of Income-tax (Appeals)-2, Ahmedabad, dated 10th November 2017. Issue 2: Impact of Insolvency and Bankruptcy Code The appeal was impacted by a petition under the Insolvency and Bankruptcy Code, 2016, filed against the assessee-company. The National Company Law Tribunal (NCLT), Ahmedabad Bench admitted the petition, initiating Corporate Insolvency Resolution Process (CIRP). A moratorium was declared under Section 14 of the Code, prohibiting various actions against the corporate debtor. Issue 3: Application of Moratorium During the ongoing CIRP process, the assessee's counsel argued that no proceedings, including Income-tax proceedings, could continue against the corporate debtor due to the moratorium imposed by the Insolvency and Bankruptcy Code, 2016. Issue 4: Dismissal of Appeal Referring to a decision by a Co-ordinate Bench in a similar case, the appeal was dismissed in limine. The Tribunal observed that once the NCLT initiates insolvency proceedings and imposes a moratorium under the Code, all proceedings stand in abeyance. The dismissal was based on the overriding effect of the Insolvency and Bankruptcy Code on all acts, including the Income Tax Act. In conclusion, the appeal was dismissed, with liberty given to parties to revive the appeal after the moratorium period expires or as approved by the adjudicating authority. The decision was in line with the precedent set by the Co-ordinate Bench in a similar case.
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