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TMI Blog2023 (6) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT(A) has clearly held that assessment order is not enforceable, there is no reason for filing any appeal before him. Even otherwise, he has already directed AO that the above demand cannot be recovered and if he wants to educate this issue the learned assessing officer should proceed before NCLAT. In this case assessee is not required to pay any tax, there is no liability of any nature arising on the assessee as well as the order of the learned CIT(A) has become final holding that AO does not have any right to pursue any consequences out of the assessment order against the assessee therefore it is in consequential that whether the appeal of the assessee before CIT(A) is stated to be dismissed or allowed - Decided in favour of assessee. - ITA No.199/Mum/2023 - - - Dated:- 12-6-2023 - Shri Prashant Maharishi, AM And Shri Kuldip Singh, JM For the Assessee : Mr. Ronak Doshi And Mr. Priyank Gala, ARs For the Revenue : Mr. K.C. Selvamani, CIT DR ORDER PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by Piramal Capital and Housing Finance Ltd. formerly known as (Dewan Housing Finance Corporation Ltd.) for A.Y. 2017-18 against the appellate ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relief in terms of the RP and the provisions of IBC. 3. The Appellant thus prays that it be held that the assessment order for the captioned year, being prior to the RP, cannot be proceeded further. WITHOUT PREJUDICE TO GROUND NO. I AND II, GROUND NO. III: VIOLATION OF PRINCIPLES OF NATURAL JUSTICE 1. On the facts and circumstances of the case and in law, the CIT(A) erred in not providing any opportunity to the Appellant to make submissions on merits. 2. The Appellant thus prays that the order passed by Hon'ble CIT(A) be quashed as it is in violation of principles of natural justice. WITHOUT PREJUDICE TO GROUND NO. I, II AND III, GROUND NO. IV: DISALLOWANCE U/S 14A R.W.R. 8D AMOUNTING TO Rs. 3,65,56,216/- 1. On the facts and circumstances of the case and in law. the Id. AO erred in making disallowance u/s 14A of the Act r.w.r. 8D amounting to Rs. 3,65,56,216/- 2. The AO, inter-alla, failed to appreciate and ought to have held that: i. Disallowance u/s 14A of the Act can be made only for the expenditure incurred in relation to earning exempt income. ii. Application of Rule 8D is not automatic and the AO could not invoke r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case and in law, the Id. AO erred in making addition of Rs. 4,00,00,000/- as unexplained cash u/s 68 r.w.s. 115BBE of the Act without granting any opportunity of being heard and without considering submissions filed during the course of assessment proceedings. 2. The Appellant prays that the addition u/s 68 r.w.s 115BBE of the Act amounting to Rs. 4,00,00,000/- be deleted. WITHOUT PREJUDICE TO GROUND NO. 1, II AND III, GROUND NO. VIII: DISALLOWANCE OF FOREIGN TRAVELLING EXPENSES AMOUNTING TO Rs. 4,05,00,000/-: 1. On the facts and circumstances of the case and in law, the Id. AO erred in arbitrarily disallowing an amount of Rs 4,05,00,000/- being 50% of foreign travelling expenses incurred during the year without appreciating the submission of the Appellant that such expenses are incurred for Appellant's business. 2. The Appellant prays that the disallowance of foreign travelling expenses amounting toRs. 4,05,00,000/- be deleted. WITHOUT PREJUDICE TO GROUND NO. I, II AND III, GROUND NO. IX: LEVY OF INTEREST U/S 234C OF THE ACT: 1. On the facts and circumstances of the case and in law, the Id. AO erred in levying incorrect int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7;3,478 crores. Accordingly, assessee was assessed on the book profit. 03. The assessee aggrieved with the assessment order filed an appeal before the learned CIT (A), who passed an order on 23rdNovember 2022. The facts were stated before him that National Company Law Tribunal on 7thJune 2021 has approved the resolution plan of the assessee and accordingly, as per resolution plan the assessee, corporate debtor, is successful resolution applicant in the name of Piramal Capital Housing Finance Limited. By that order there was a reverse merger of Piramal Capital Housing Finance Limited into Dewan Housing Finance Corporation Limited. The learned CIT (A) further held that vide order dated 12thJuly, 2021, the NCLAT has passed an order no.467 of 2021. According to which all statutory due of the Central and State Government or Local Authorities, if not part of the resolution plan shall stand extinguished and no proceedings in respect of such dues for the prior to the date of approval under Section 31 of the Act could be continued. The learned CIT (A) also followed the decision of the co-ordinate Bench for A.Y. 2014-15 and 2015-16 in ITA No.595/Mum/2020 and 302/Mum/2019 and also of N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Finance Corporation Ltd was declared insolvent under the insolvency and bankruptcy court 2016 . Resolution plan of Piramal capital and housing finance limited was approved by the order of National company law Tribunal. The order of NCLAT was passed on 7 June 2021 and further the National company law Tribunal also passed an order on 12 July 2021. As per the resolution plan Piramal Capital and housing finance limited was the successful resolution applicant and it was merged with the appellant [ Dean Housing Finance ] with effect from 30 September 2021 and therefore the appellant was renamed to Piramal capital and housing finance limited. In the relevant extract of the resolution plan, the assessment year 2017 18 was included. Therefore, it is apparent that the appeal for assessment year 2017 18 is covered in the resolution plan. Therefore, there cannot be any action on the assessee for recovery of the tax due for the impugned assessment year. This was also held by NCLAT as per order dated 12/7/2021. Therefore, the learned CIT A held that when they learned assessing officer is not capable of recovering any tax dues from the assessee, the appeal of the assessee was held to be i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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