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TMI Blog2022 (7) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-02-2018 of the Ld.Commissioner of Income Tax (Appeals)-1, Guntur relating to the AY.2006-07. Appeal in ITA No.1963/Hyd/2018 filed by the Revenue is directed against the order dated 05-07-2018 of the CIT(Appeals)-Kurnool, relating to the AY.2009-10. Assessee has filed Cross-Objection No.41/Hyd/2018 against the appeal filed by the Revenue for the AY.2009-10. For the sake of convenience, both the appeals of Revenue and the Cross-Objection of the assessee were heard together and are being disposed-of by this common order. ITA No.1039/Hyd/2018 (AY.2006-07): 2. Facts of the case, in brief, are that the assessee filed its return of income for the AY.2006-07, declaring loss of Rs.33,19,28,249/-, Short Term Capital Gains of Rs.3,48,886/- and Long Term Capital Gains of Rs.20,71,49,940/-. Finally, the assessee admitted net business loss of Rs.12,44,29,420/. The return was processed u/s.143(1) of the Income Tax Act, 1961 [Act]. Subsequently, the Assessing Officer re-opened the assessment u/s.147 of the Act on the ground that income chargeable to tax in the form of Long Term Capital Gains has escaped assessment. Accordingly, notice u/s. 148 of the Act was issued. In response to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that Corporate Insolvency Resolution process took place and the NCLT, Amaravati Bench vide order dt.25-06-2021 accepted the resolution plan dt.19-05-2021 submitted jointly by one M/s.RV Consulting Services Pvt. Limited and Sagar Power Limited, who happened to be the resolution applicants. The NCLT, Amaravati Bench observed that as against the claim of government dues to the tune of Rs.189.91 Crores, a sum of Rs.159.37 Crores was admitted, but only a sum of Rs.0.22 Crores was provided and upon this acceptance of the resolution plan dt.19-05-2021, all crystalised as well as the un-claimed liabilities of the corporate debtor (the assessee) as on such date stood extinguished and no creditors of the erstwhile corporate debtor can claim anything other than the liabilities referred to in the plan. Referring to the order of the Tribunal in assessee s own case in ITA Nos.562 563/Hyd/2018, dt.25-04-2022 for the AYs.2008-09 2013- 14, copy of which is placed at Pg.43 to 47 of the paper book, he submitted that the Tribunal has decided identical issue and has held that Revenue is bound by the resolution plan accepted by the NCLT and not entitled to anything more than what is provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; that the 2019 amendment to Section 31 of the Insolvency and Bankruptcy Code is clarificatory and declaratory in nature and, therefore, will be effective from the date on which I B Code has come into effect; and that consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. 4. We have gone through the record in the light of the submissions made on either side. It could be seen from the Form-B filed by the Revenue before the Insolvency Resolution Professional on 03/07/2020 (a copy of which forms part of record), Revenue preferred a claim to the tune of Rs.5,92,88,707/- before the Insolvency Resolution Professional basing on the demand notice/competition sheet and outstanding demand taken as on 03/07/2020, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the NCLT. Amount provided under the resolution plan is only Rs.22 Lakhs as against the claim of the Revenue to the tune of Rs.5.93 Crores and therefore, the assessee cannot have any grievance in disposing-of these appeals in tune with the orders of the NCLT. Appeals are disposed-of accordingly. 6.1. Respectfully following the order of the Tribunal in assessee s own case, we hold that the Revenue is bound by the resolution plan as accepted by the NCLT and not entitled to anything more than what is provided therein. We find the amount provided under the resolution plan is only Rs.22 Lakhs as against the claim of the Revenue to the tune of Rs.189.91 Crores. Therefore, the assessee or Revenue cannot have any grievance in disposing of these appeals in tune with the orders of the NCLT. This appeal is disposed-of accordingly. 7. In the result, appeal of Revenue in ITA No.1039/Hyd/2018 (AY.2006-07) is partly allowed. ITA No.1963/Hyd/2018 (AY.2009-10): C.O.No.41/Hyd/2018 (AY.2009-10): 8. After hearing both the sides, we find the grounds raised by Revenue are as under: 1. The order of the Ld CIT(Appeals) is bad both on facts and in law. 2. Whether, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. If there is no finding or direction in the order of a higher authority, then Explanation 2 to Section 153(3) of the Act will apply. On the other hand, if there is a finding or direction, the case would fall under section 153(3)(ii) In this case, the Hon'ble ITAT excluded the long term capital gains from A.Y.2008-09 thereby giving jurisdiction to the AO to reassess the same in AY 2009-10, where it should have been taxed as held by the Hon'ble ITAT. 5. Whether, on the facts and in circumstances of the case, the ld.ClT(A) is correct in allowing the appeal of the assessee following the decision of Hon'ble ITAT, Hyderabad in the case of M/s Sujana Metal Products Ltd in ITA No.1068 1069/Hyd/2010 dtd 21.04.2011 and in treating the issue of notice u/s 148 as bad in law. 6. Any other additional ground that may be urged at the time of appeal hearing . 8.1. Grounds raised by assessee in C.O.No.41/Hyd/2018 are as under: 1. The order of the CIT(A) is factually and legally valid not only in law but also in the facts and circumstances of the case. 2. The order of the CIT(A) is legally valid in holding that mere observation or passing remark of Hon& ..... X X X X Extracts X X X X X X X X Extracts X X X X
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