ANKUR JAIN, ACIT(OSD), RANGE -10, ITO C.R BUILDING, V. GOODLUCK CARBON PVT. LTD. , NEW DELHI

ITA 3929/DEL/2023

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (OSD), Range-10, New Delhi against M/s. Goodluck Carbon Pvt. Ltd. concerning the assessment year 2014-15. The appeal and the subsequent cross-objection were related to the proceedings under section 143(3) of the Income-tax Act, 1961. However, the proceedings were impacted by an ongoing corporate insolvency resolution process (CIRP) against the assessee, initiated by Canara Bank, which led to a moratorium declared by the National Company Law Tribunal. This moratorium prohibited any legal proceedings against the corporate debtor, including tax assessments, during its duration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708795 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2014-2015
• Other Referred Cases: Ghanashyam Mishra & Sons (P.) Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd.
• Laws Referred To: Income-tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: RAJESHWAR PAINULY
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.3929/Del/2023 Assessment Year: 2014-15 DCIT(OSD), Range-10, New Delhi Vs. M/s. Goodluck Carbon Pvt. Ltd., D-54, A 2nd Floor, 100 Feet Road, Chhatarpur Enclave, Delhi PAN: AABCG7873R (Appellant) (Respondent) With C.O. No.39/Del/2024 [Arising out of ITA No.3929/Del/2023] Assessment Year: 2014-15 M/s. Goodluck Carbon Pvt. Ltd., D-54, A 2nd Floor, 100 Feet Road, Chhatarpur Enclave, Delhi Vs. ACIT(OSD), Range-10, New Delhi PAN: AABCG7873R (Appellant) (Respondent) ORDER PER SATBEER SINGH GODARA, JM This Revenue’s appeal as well as assessee’s cross objections for assessment year 2014-15, arises against the Commissioner of Assessee by Sh. Rajeshwar Painuly, CA Department by Sh. Pooja Swaroop, CIT(DR) Date of hearing 26.06.2025 Date of pronouncement 18.07.2025 ITA No.3929/Del/2023 & C.O. No. 39/Del/2024 2 | P a g e Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1057535071(1), dated 31.10.2023 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused. 2. We notice at the outset during the course of the hearing that there is hardly much a need for the tribunal to delve with the relevant factual matrix at length so far as the Revenue’s instant main appeal as well as the assessee’s cross-objection herein, are concerned. This is for the precise reason that the assessee’s financial creditor, namely, Canara Bank has already filed its case C.P. No. IB 595(ND)/2023 before the National Company Law Tribunal, New Delhi, Court-IV which stands admitted and vide order dated 18.10.2024, the said learned bench has declared moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code, 2016 thereby imposing the following conditions: “7.1 The application bearing IB-595(ND)/2023 filed by the Applicant/(FC), under section 7 of the Code read with Rule 4 of the Adjudicating Authority Rules for initiating CIRP against the Corporate Debtor is admitted. 7.2 We also declare moratorium in terms of Section 14 of the Code. The necessary consequences of imposing the moratorium flows from ITA No.3929/Del/2023 & C.O. No. 39/Del/2024 3 | P a g e the provisions of Section 14(1)(a), (b), (c) & (d) of the Code. Thus, the following prohibitions are imposed: (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, Adjudicating Authority, 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 Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 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. (e) The IB Code 2016 also prohibits Suspension or termination of any license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concessions, clearances or a similar grant or right during the moratorium period.” 3. The Revenue is indeed very fair in not disputing the above intervening developments. That being the case, we hereby quote Ghanashyam Mishra & Sons (P.) Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd. (2021) 126 taxamnn.com 132 (SC) and (2024) 464 ITR 133 (Del) to conclude that both these Revenue’s appeal as well as the assessee’s cross-objections; as the case may be, could not proceed further at this stage. We accordingly refer to ITA No.3929/Del/2023 & C.O. No. 39/Del/2024 4 | P a g e section 178(vi) of the Act to dismiss both these cases at this stage subject to just all exceptions. Ordered accordingly. All other rival pleadings between the parties have been referred academic in above terms. 4. To sum up, this Revenue’s appeal ITA No.3929/Del/2023 and assessee’s cross objection C.O. No. 39/Del/2024 are hereby dismissed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 18th July, 2025 Sd/- sd/- (S. RIFAUR RAHMAN) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18th July, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "