ASHOK MAHINDRU,NEW DELHI V. ACIT, INTERNATIONAL TAXATION, GURGAON

ITA 934/DEL/2023

AI Insights

The case involves Ashok Mahindru, the appellant, who faced proceedings under the Income Tax Act for the assessment year 2015-16. However, concurrent to these proceedings, the National Company Law Tribunal (NCLT) admitted a petition for insolvency against Mahindru, appointing a Bankruptcy Trustee. This development led to the legal question of whether the Income Tax Department could continue its proceedings under the IT Act despite the ongoing IBC proceedings. The Tribunal, citing precedents and the overriding effect of the IBC, dismissed the appeal, allowing for the possibility of a future miscellaneous application to recall this order once the IBC proceedings conclude.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668911 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Other Referred Cases: Pratibha Industries Ltd. Vs. DCIT (142 taxmann.com 295), Pr.CIT Vs. Monnet Ispat & Energy Ltd. (107 taxmann.com 481)
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SIDDHARTH BHIMSINGH MEENA
• Assessee Lawyers: VINOD JAIN

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRAM PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 934/DEL/2023 [A.Y 2015-16] Ashok Mahindru Vs. The A.C.I.T 511/2/1, Rajokri International Taxation New Delhi Gurgaon PAN: ABHPM 8364 M (Appellant) (Respondent) Assessee By : Shri Vinod Jain, CA Shri Ayush Mittal, CA Shri Vishal Lohan, CA Department By : Shri Siddharth Bhimsingh Meena, CIT-DR Date of Hearing : 25.01.2025 Date of Pronouncement : 25.01.2025 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- This appeal by the assessee is directed against the order of DRP - 1, New Delhi dated 14.12.2022, for A.Y 2015-16. 2 ITA No. 934/DEL/2023 [A.Y 2015-16], Ashok Mahindru 2. At the very outset, the ld. counsel for the assessee informed the Bench that the case of the assessee has been admitted before the Hon'ble National Company Law Tribunal [NCLT], New Delhi which has passed order dated 28.04.2025 admitting the petition and appointing of Insolvency Resolution as Bankruptcy Trustee. 3. By virtue of this order of NCLT which accepted the application filed by the operational creditor against the assessee for initiating proceedings under IBC, no parallel proceedings under Income Tax Act can be undertaken. 4. We are fortified in our observation by the decision of the Mumbai Bench of the Tribunal in the case of Pratibha Industries Ltd. Vs. DCIT (142 taxmann.com 295) taking note of the decision of the Hon’ble Apex Court in the case of Pr.CIT Vs. Monnet Ispat & Energy Ltd. (107 taxmann.com 481) wherein the Hon’ble Apex Court held that IBC has an overriding effect over the provisions of IT Act and dismissed the appeals of the Revenue as well as the Assessee as the proceedings under Insolvency and Bankruptcy Code 2016 are initiated on the assessee. Therefore, since NCLT had directed to admit the Application filed by the operational creditor against the assessee, the proceedings under I.T. Act in the case of assessee can no longer continue. 3 ITA No. 934/DEL/2023 [A.Y 2015-16], Ashok Mahindru 5. Thus, the appeal filed by the assessee are hereby dismissed with the liberty to the assessee to file miscellaneous application for recall of this order once the assessee is declared that it is out of the purview of IBC proceedings under Insolvency and Bankruptcy Code 2016, as and when situation arises. 6. In the result, appeal of the assessee in ITA No. 934/DEL/2023 is dismissed. The order is pronounced in the open court on 25.06.2025. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 25th JUNE, 2025. VL/ Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 4 ITA No. 934/DEL/2023 [A.Y 2015-16], Ashok Mahindru Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order . 2. Date on which the typed draft Tribunal Order is placed before the Dictation Member 3. Date on which the typed draft Tribunal Order is placed before the other Member 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S./P.S. 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr. P.S./P.S 7. Date on which the final Tribunal Order is uploaded by the Sr. P.S./P.S. on official website 8. Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9. Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10. Date on which the file goes to the Supervisor (Judicial) 11. The date on which the file goes for xerox 12. The date on which the file goes for endorsement 13. The date on which the file goes to the Superintendent for checking 14. The date on which the file goes to the Assistant Registrar for signature on the Tribunal order 15. Date on which the file goes to the dispatch section 16. Date of Dispatch of the Order "