9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 269 - AT - Income TaxReopening of assessment post order passed by Income Tax Settlement Commission u/s. 245D - additions made by the AO in the present order surviving after order of NCLT - HELD THAT - It is pertinent to note that the assessment was framed u/s. 144 r.w.s. 147 of the Act dated 21-12-2018 making estimated addition. During the pendency of the appeal before the ld. CIT(A), the National Company Law Tribunal passed order dated 14-10-2021 whereby resolution plan approved by the Committee of creditors was approved and thus the same resolution plan is binding on all the parties such as Central Government and the related dues shall stand extinguished. This submission of AR is a settle legal principle and therefore the same is accepted. The Income Tax Settlement Commission has also passed order which is binding on the Revenue Department and the Assessing Officer has no power to reopen the assessment. CIT(A) has rightly held that claims which are part of the resolution plan stood extinguished as well as once the Income Tax Settlement Commission has decided/settled the tax component between the assessee and the revenue, the revenue authorities do not have any power to reopen such assessment. Revenue appeal dismissed.
Issues:
The judgment involves appeals filed by the Revenue against the order of the ld. Commissioner of Income Tax, CIT(A)-11, Ahmedabad, in proceedings u/s. 250 r.w.s. 144 r.w.s. 147 for the assessment years 2012-13 & 2013-14. ITA No. 543/Ahd/2022 A.Y. 2012-13: The grounds of appeal included the CIT(A) erred in deleting additions post order of NCLT, failed to appreciate Hon'ble Supreme Court order, and erred in deleting additions related to circular trading and inflated purchases. The AO's order was challenged. ITA No. 544/Ahd/2022 A.Y. 2013-14: Similar issues were raised as in ITA No. 543, with additional challenges regarding additions made on Income from House Property, u/s 68 of the Act, and u/s 69C of the Act. The CIT(A) was criticized for not upholding the AO's order. ITA No. 545/Ahd/2022 A.Y. 2013-14: Issues were akin to the previous appeals, with additional concerns about the deletion of an addition made u/s 68 of the Act as unexplained income. The CIT(A) was faulted for not supporting the AO's decision. The assessee contended that the Income Tax Settlement Commission's final order settled the matter, making the assessment conclusive and barring the AO from reopening it. The AO's additions were based on circular inflated purchases, contested by the assessee. The CIT(A) partially allowed the assessee's appeal, prompting the Revenue to challenge the decision. The Department argued that the additions should not have been deleted post NCLT order, citing relevant legal precedents. The authorized representative emphasized that NCLT's order approving the resolution plan extinguished all dues, including those not part of the plan. Legal cases were cited to support this argument, asserting that the CIT(A) rightly deleted the additions. After hearing both parties, it was concluded that the NCLT's order extinguishing dues and the Settlement Commission's finality on assessments prevented the AO from reopening the matter. The CIT(A)'s decision to delete the additions was upheld, leading to the dismissal of all three appeals filed by the Revenue. In conclusion, all three appeals filed by the Revenue were dismissed based on the binding nature of the NCLT and Settlement Commission orders, preventing the AO from revisiting the assessments.
|
