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TMI Blog2022 (11) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... nt by : Shri B. Ramakrishnan , FCA Respondent by : Shri Guru Bashyam , CIT ORDER PER MAHAVIR SINGH , VICE PRESIDENT : These six appeals by the Revenue are arising out of three different orders of the Commissioner of Income Tax (Appeals)-18, Chennai in ITA Nos.1013 1014/15-16 dated 05.10.2017, 91 92/16-17 dated 13.10.2017 and 1042 1043/15-16 dated 22.11.2017. The assessments were framed by the ACIT, Central Circle 2(3), Chennai for the assessment years 2008-09 to 2013-14 u/s.143(3) r.w.s. 153A of the Income Tax Act, 1961, (hereinafter the Act ) vide orders dated 31.03.2015 31.03.2016. 2. At the outset, the ld.AR for the assessee filed copy of order of National Company Law Tribunal, Chennai in MA/5/2021 in CP/6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, we hereby order for the dissolution of the Corporate Debtor viz., M/s. SBQ Steels Limited and the Liquidator is directed to forward a copy of this Order to the RoC concerned and also to the IBBI for its records within a period of 7 days from the date of this Order. Accordingly, MA/5(CHE)/2021 stands Allowed. 2.1 The ld.AR for the assessee referred to note on IBC proceedings and stated that once the company is dissolved by NCLT, the proceedings of any type cannot survive. Hence, he requested that the appeals filed by the Revenue in these six years have become infructuous and hence, deserves to be dismissed at the threshold. The ld.AR for the assessee referred to note filed by assessee on IBC proceedings in assessee s case, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keholders of the company were called upon to file their claims with proof before 20.03.2019. The Liquidator had filed the Asset Memorandum listing all the available assets for sale under the Liquidation Process on 02.05.2019. Subsequently, several auctions were conducted for the sale of the corporate debtor as a going concern. In the 4th auction conducted on 07.08.2020, M/s.Liberty Group Pte Ltd was declared the highest bidder and on 11.08.2020, Liberty also had confirmed the mode of purchase as 'set of assets collectively' and for completing the transaction they had incorporated a special purpose vehicle knows as Liberty Steel SBQ Limited. Thereafter, on 10.12.2020, the Liquidator had issued the sale certificate and han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoking the provisions of section 179 of the Act to the extent applicable. For the sake of brevity, the provisions of section 179 are reproduced which reads as under: Liability of directors of private company 44[***]. 179. (1) Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), where any tax due from a private company in respect of any income of any previous year or from any other company in respect of any income of any previous year during Which Such other company was a private company cannot be recovered, then, every person who was a director of the private company at any time during the relevant previous year shall be jointly and severally liable for the payment of such tax unless he proves that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where assessee was a director of a company against which tax demand for assessment year 1996- 97 remained unpaid, provisions of section 179 could not be made applicable since said company was converted into public company from 5-12-1994. Further, in a similar case the Hon'ble High Court of Gujarat in the case of Mr.Radhey Mohan Sharma v. DCIT [2014] 44 taxmann.com 66 (Gujarat) had held that where company became public limited company vide certificate of incorporation dated 25-5-1992, notice under section 221 for recovery of dues of company for years 1995-96 to 1996-97 to assessee director of said company could not be sustained. Thus, the provisions of section 179 of the Act would not be applicable to the directors of the M/s. SBQ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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