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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 ..... ntral 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/665/IB/2017 filed under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 47A in the matter of SBQ Steels Limited, order dated 11th February, 2022, wherein NCLT has passed an order dissolving the company and the relevant order from para's 9 to 11 read as under:- 9. Heard the submissions made by the Learned Counsel for the Applicant. Section 54 of the IBC, 2016 provides as follows: - Section 54 "( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings 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, which read as under:- M/s.Union Bank of India Limited, Financial Creditor, had filed an application under the Insolvency and Bankruptcy Code, 2016 ('IBC' or the Code') against M/s.SBQ Steels Limited (Corporate Debtor' or the Company') and Corporate Insolvency Resolution Process ('CIRP') was initiated & Mr.Vasudevan was appointed as Interim Resolution Professional (IRP') vide National Company Law Tribunal ('NCLT') Order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 handed over the possession of all the assets to Liberty SPV after the receipt of total sale consideration. The consideration received from Liberty SPV was distributed to the stakeholders as per section 53 of the Code. Consequently, the Liquidator had filed an application u/s 54 of the Code and the NCLT vide Order dated 11.02.2022 had ordered for dissolution of the corporate debtor. The extract of section 54 of the IBC is reproduced as under: 'Section 54: Diss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her 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 the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (2) Where a private company is converted into a public company and the tax assessed in respect of any income of any previous year during which such company was a private company cannot be recovered, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax due in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 Steels Limited." 3. When these facts were put to the ld.CIT-DR, he only requested that in view of the decision of Hon'ble Supreme Court in the case of M/s.Lovely Exports (P) Ltd., 216 ITR 195, the addition in the hands of investing company can be considered as unexplained investment. The ld.CIT-DR drew our attention to Revenue's paper-book, volume- 1, page Nos.1 to 35, wherein the AO's report vide F.No.ACIT/CC- 2(3)/2021-22 dt. 19.03.2022 enclosed, can be considered. Apart from that, on the issue of dissolv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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