The Income Tax Appellate Tribunal dismissed the appeals filed by ...

Company in liquidation can't appeal tax demands due to IBC moratorium, must seek NCLT nod.

Case Laws     Income Tax

September 18, 2024

The Income Tax Appellate Tribunal dismissed the appeals filed by a company in liquidation process against income tax proceedings due to the moratorium imposed u/s 14 of the Insolvency and Bankruptcy Code, 2016. The moratorium prohibits continuation of pending suits or proceedings against the corporate debtor during the insolvency resolution process. The Tribunal relied on Supreme Court and High Court judgments which held that even arbitration proceedings cannot continue after the moratorium, and appeals by the company cannot be sustained without permission from the National Company Law Tribunal or proper authorization by the Insolvency Resolution Professional. The appeals were dismissed with liberty to refile after the moratorium period, if desired, by making the representative of the Committee of Creditors a party.

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