9911796707
TMI Blog2023 (3) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... 05-06 to 2014-15, however, the IRP declined to consider the revised demand of the AO as Insolvency Resolution Process period has ended. Thus, the aforesaid facts clearly reveal that the Income Tax demands relating to the assessee for assessment years 2005-06 to 2014-15 have been fully extinguished and reduced to Nil in the final order of the NCLT. Thus we quash the impugned assessment orders. Resultantly, the impugned orders of Commissioner (Appeals) are set aside. - ITA No.2485/Del/2019 With ITA No.2486/Del/2019 - - - Dated:- 25-1-2023 - Shri Saktijit Dey, Judicial Member And Shri Anadee Nath Misshra, Accountant Member For the Appellant : Sh. V.K. Jain, CA For the Respondent : Ms. Sarita Kumari, CIT(DR) ORDER PER SAKTIJIT DEY, JM: Captioned appeals by the assessee arise out of two separate orders, both dated 23.01.2019, of learned Commissioner of Income Tax (Appeals)-6, Delhi, pertaining to assessment years 2010-11 and 2011-12. 2. The issues arising in both the appeals are identical and relate to the powers of the Assessing Officer in framing assessments as well as raising tax demand in the face of order passed by the National Company Law Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue, CBDT has given approval for filing Special Leave Petition (SLP) before Hon ble Supreme Court. 4. Thus, in the aforesaid premises, the Assessing Officer completed the assessments ex-parte raising tax demands. 5. Against the assessment orders so passed, the assessee preferred appeals before learned Commissioner (Appeals). However, by the impugned orders, learned Commissioner (Appeals) dismissed both the appeals. 6. Before us, learned counsel appearing for the assessee submitted that in the face of moratorium order passed by the NCLT, the Assessing Officer could not have proceeded to complete the assessments. He submitted, the Assessing Officer not only has declined to give effect to the moratorium order of the NCLT but even went to the extent of not following the decision of the Hon ble Jurisdictional High Court by saying that the department is contemplating filing of SLP. He submitted, the Assessing Officer has not only acted in a high handed manner but has not even followed the binding decision of the Hon ble Jurisdictional High Court. He submitted, the plea of the Assessing Officer of not following the jurisdictional High Court s decision is no more availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (II) That the supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. (III) That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. (IV) That the order of moratorium shall have effect from 18.7.2017 till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan tinder sub-section (1) of section 31 or passes an order for liquid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s surprising to note that even though the order of the Hon ble Jurisdictional High Court, dismissing a batch of appeals filed by the Revenue arising out of Income Tax Act proceedings due to moratorium imposed by NCLT was brought to the notice of the Assessing Officer, however, disregarding such order he went ahead to complete the assessments in spite of moratorium imposed by the NCLT. Therefore, the assessment orders are void-ab-initio. 11. There is another aspect to the issue. As brought to our notice by learned counsel for the assessee, in the meanwhile, the NCLT has passed the final order on 24.07.2018 in case of the assessee, wherein, following observations have been made:- 5. The total amount of claims admitted by the Applicant Resolution Professional in the CIRP of the Corporate Debtor is Rs.11478,09,50,325 (Rupees eleven thousand four hundred seventy eight crore nine lac fifty thousand three hundred twenty-five), details of which are set out herein below: S.N. Category of Creditor Amount claimed (in Rs.) Amount of claims admitted (in Rs.) 1. Financial Creditors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Debtor. When we have asked as to why so much difference has come in between liquidation value and fair value and how the COC approved the resolution plan that; is slightly above liquidation value, the Counsel appearing on behalf of the COG submitted that the COC has approved after thoughtful consideration looking at the upfront payment coming from the Resolution Applicant. In view of the same, though difference between fair value and liquidation value Is more, than two thousand crores rupees, this Bench, considering the submissions of the Counsel appearing on behalf of the COC and looking at the compliance of Section 30(2) of the Code, approved this Resolution plan. 12. Thus, as could be seen from the aforesaid observations of the NCLT, debt due to various creditors, such as, unsecured financial creditors, operational creditors and other creditors, including Income Tax Department were extinguished and determined at Nil as per waterfall mechanism mentioned under section 53 of the IBC Code. This is clearly evident from List B of the Report of the IRP and finds place at entry 47 of List-B appended to the final order of the NCLT in respect of income tax demand for various a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
