9911796707
TMI Blog2024 (8) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... lly initiate any suit or other legal proceeding against the corporate debtor then the present proceedings before the ITAT are also affected and cannot proceed parallel to the proceedings under the IBC, 2016. From a plain reading of the provisions of Section 178(6) of the IBC, 2016, the IBC, 2016 has an overriding effect and therefore, the present proceedings cannot be sustained and the appeals need to be dismissed. We hereby dismiss all the appeals filed by the Revenue, with the liberty granted to the appellant/official liquidator to recall the present order when the occasion so warrants. - Sri Rajpal Yadav, Vice-President And Sri Sanjay Awasthi, Accountant Member For the Department : Subhendu Datta, CIT DR. For the Assessee : Sreenita Ghosh Thaker, Adv. ORDER PER SANJAY AWASTHI, ACCOUNTANT MEMBER: The instant batch of appeals are filed by the Income Tax Department bearing numbers ITA No. 1139, 1140, 1141 1801/KOL/2018. In all these four appeals the common issue involved is that a liquidator has been appointed under the provisions of Insolvency and Bankruptcy Code, 2016 (hereafter IBC ). Accordingly, these four appeals are being disposed off with this single order. ITA No. 1139/K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions to the returned income/loss. Aggrieved with the action of ld. AO, the appellant filed an appeal before the ld. CIT(A), where his appeal was allowed in full. Thereafter, the Department has filed this appeal before the ITAT. 3. It is seen that all the appeals have been filed by the Income Tax Department on 24.05.2018 and thereafter, the factual position/chronology becomes common for all the four cases. The same deserves to be highlighted as under: 24.07.2018 Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2017 was filed by a Financial Creditor of the Assessee 08.08.2019 Resolution Professional under the Insolvency and Bankruptcy Code, 2016 was appointed by the Hon ble National Company Law Tribunal. 15.06.2022 Liquidator appointed under Section 33 of the Insolvency and Bankruptcy Code, 2016 by the Hon ble National Company Law Tribunal. 15.02.2023 Notice received by the Liquidator intimating him of the proceedings filed on the Corporate Debtor (being the present assessee) before the Hon ble Income Tax Appellate Tribunal. 21.03.2023 Reply by the Liquidator to the notice dated 15.02.2023- Liquidator by its letter intimated the provisions of the Insolvency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: 4.2. A reading of this provision makes it clear that once it is not possible to legally initiate any suit or other legal proceeding against the corporate debtor then the present proceedings before the ITAT are also affected and cannot proceed parallel to the proceedings under the IBC, 2016. 4.3. Pertinently, it is also to be observed that in case of parallel proceedings under Income-tax Act, 1961 and IBC, 2016, the IBC, 2016 has an overriding effect over the provisions of the Income-tax Act which has been decided by Hon'ble Apex Court in Pr. CIT v. Monnet Ispat Energy Ltd. [2019] 107 taxmann.com 481, wherein the Hon'ble Apex Court had observed that as per section 238 of IBC, 2016, the IBC Code will override anything inconsistent contained in any other enactment, including the Income-tax Act. It is also trite to peruse section 178 of the Income-tax Act, 1961 which has been amended for the purpose of preventing any conflict with provisions of IBC Code, which is reproduced as under: 178. (1) Every person (a) who is the liquidator of any company which is being wound up whether unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointly and severally. (6) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force (except the provisions of the Insolvency Bankruptcy Code, 2016). (emphasis added) 4.4. From a plain reading of the provisions of Section 178(6) of the IBC, 2016, the IBC, 2016 has an overriding effect and therefore, the present proceedings cannot be sustained and the appeals need to be dismissed. Strength is also drawn from the order of the Hon'ble Calcutta High Court in the case of PCIT vs. Amrit Feeds Ltd. reported in ITAT/277/2023 IA NO: GA/2/2023, vide order dated 01.05.2024, wherein the Hon'ble Court approved the action of ITAT, Kolkata in dismissing the pending appeals before it through the appeals pertaining to M/s. Amrit Feeds Ltd. (supra) in ITA Nos. 2307/KOL/2016, 1863/KOL/2018, 1842/KOL/2018 1718/KOL/2019 in which on identical grounds to the present appeal all matters had been dismissed considering the overriding effect of IBC, 2016 over the Income Tax Act, 1961. 4.5. The relevant portions from the order of the Hon'ble Calcutta High Court (supra) deserves to be extracted as under: We have he ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
