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TMI Blog2023 (3) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... im Resolution Professional (IRP). We find that ld IRP had not impleaded himself to represent the assessee-company in the present appeal, hence, in view of Section 14 of I B code there cannot be any continuation of any pending proceedings before this Tribunal. Hence, we deem it fit to dismiss the appeal of the Assessee and all appeals of Revenue, as not maintainable in the present format. However, liberty is given to the IRP or his successor in interest to implead himself on behalf of the assessee company by filing a Miscellaneous Application before us, if he so desires, at later stage, in which event these appeals shall be restored. Likewise, liberty is given to Revenue to file Miscellaneous Application before us, if the Revenue so desires, at later stage, in which event these appeals shall be restored. With these observations, the appeal of the Assessee and all appeals of Revenue are hereby dismissed as not maintainable in the present format. - IT(SS)A No. 38/SRT/2021, IT(SS)A No. 46/SRT/2021, IT(SS)A No. 47/SRT/2021, ITA No. 120/SRT/2021, ITA No. 176/SRT/2021 - - - Dated:- 13-3-2023 - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Assessee : Shri Rasesh Shah, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion plan stand frozen and will be binding on the corporate debtor and its employees, members, creditors, Central Government, any State Government or any local authority, guarantors and other stake holders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not part of 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 a part of resolution plan. The ld Counsel further states that Hon ble Supreme Court further held that amendment in Section 31 of I B Code is clarificatory in nature and therefore will be effective from the date on which I B Code has come in effect. It was also held that all dues including statutory dues owed by the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceeding 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. The ld. Counsel submits that recently section 156A is inserted in Income Tax Act by the Finance Act, 2022, and by virtue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hibiting all of the following, namely:- (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) 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 (54 of 2002); (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. [Explanation.--For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the completion of the corporate insolvency resolution process. Therefore, we note that section 14 of I B code, 2016, is a self-explanatory provision. Hence, we note that the claims including statutory dues owned to the Central Government any State Government, if not part of resolution plan is also extinguished and no proceeding in respect of such dues prior to the date which the adjudicating authority grants its approval under section 31(1) could be continued. 9. We note that Hon`ble High Court of Telangana in the case of Sirpur Paper Mills Ltd [2022] 135 taxmann.com 188 (Telangana), held that where NCLT by order had admitted resolution plan in case of corporate debtor, which provided that all assessments or other proceedings relating to period prior to completion date shall stand terminated and all consequential liabilities would stand abated, hence, notices issued by the Income tax Department which sought to initiate assessment proceedings under section 143 (3) of Income-tax Act on corporate debtor for a period which was squarely covered by resolution plan as approved by NCLT were wholly unsustainable in law and deserved to be quashed. The findings of the Hon`ble Court is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the corporate insolvency resolution process or until the Bench approves the resolution plan under sub-section (1) of Section 31 of I B Code. In the order the ld NCLT has already appointed Interim Resolution Professional (IRP). We find that ld IRP had not impleaded himself to represent the assessee-company in the present appeal, hence, in view of Section 14 of I B code there cannot be any continuation of any pending proceedings before this Tribunal. 12. Hence, we deem it fit to dismiss the appeal of the Assessee and all appeals of Revenue, as not maintainable in the present format. However, liberty is given to the IRP or his successor in interest to implead himself on behalf of the assessee company by filing a Miscellaneous Application before us, if he so desires, at later stage, in which event these appeals shall be restored. Likewise, liberty is given to Revenue to file Miscellaneous Application before us, if the Revenue so desires, at later stage, in which event these appeals shall be restored. With these observations, the appeal of the Assessee and all appeals of Revenue are hereby dismissed as not maintainable in the present format. 13. In Combined Result, all appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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