DCIT 13.3.2 MUMBAI, MUMBAI V. RICH FEEL HEALTH AND BEAUTY PVT LTD, MUMBAI

MA 41/MUM/2025

AI Insights

The case revolves around the Revenue Department's attempt to revive an appeal against Rich Feel Health and Beauty Pvt. Ltd. concerning the assessment year 2018-19. Initially, the appeal was dismissed by the Income Tax Appellate Tribunal due to the moratorium effect of an NCLT order. However, following the cessation of the moratorium and the approval of a resolution plan by the NCLT, the Revenue filed a Miscellaneous Application to revive the appeal. The Tribunal dismissed the MA on the grounds of being time-barred and not maintainable on merits, referencing the binding nature of the NCLT's resolution plan.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826736 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-01-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Appeal Filed On: 05-02-2025
• Laws Referred To: Insolvency & Bankruptcy Code, 2016, IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HIMANSHU JOSHI
• Assessee Lawyers: SNEHAL SHAH

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “D” Bench, Mumbai. Before Shri Narender Kumar Choudhry, Judicial Member a n d Shri Girish Agrawal, Accountant Member M.A. No. 41/Mum/2025 arising out of ITA No. 610/MUM/2024 (Assessment Year: 2018-19) DCIT 13(3)(2) Room No. 229 2nd Floor, Aayakar Bhavan, M.K. Road Mumbai-400 020. Vs. M/s. Rich Feel Health and Beauty Pvt. Ltd. 198/5, Jagdish Niwas, Ram Milan Shukla Marg, Sion Koliwada Mumbai-400 022. PAN : AACCR3751J Appellant Respondent Assessee by : Shri/Ms. Snehal Shah Revenue by : Shri Himanshu Joshi Date of Hearing : 12/09/2025 Date of pronouncement : 06/01/2026 O R D E R Per Narender Kumar Choudhry (JM) :- In this case, the Hon'ble Coordinate Bench of the Tribunal vide order dated 28.6.2024 dismissed the Revenue-Department appeal being ITA No. 610/Mum/2024 by considering the contention raised by the parties that in view of the order dated 26.8.2022 passed by Hon'ble NCLT, Court No. 2, Mumbai Benches, the appeal filed by the Revenue-Department is not maintainable, however, with liberty to the Revenue-Department to seek recalling of the order and/or restoring the appeal, on finalization of the proceedings pending before NCLT against the assessee herein. Printed from counselvise.com Rich Feel Health and Beauty Pvt. Ltd. 2 2. The Revenue-Department thus being aggrieved has preferred instant Miscellaneous Application, for revival of the Revenue appeal under consideration mainly on the reason that Hon'ble NCLT has pronounced its order on 28.6.2024 and ceased the moratorium declared under section 14 IBC 2016 w.e.f. pronouncement of the order, reviving the Assessee-company. 3. The Ld. DR thus during the course of hearing on 12.9.2025, in order to support its MA, has filed one e-mail trail dated 10.6.2025 and 7.10,2025 with regard to communication made by Ld. Sr. DR and Assessing Officer, wherein the Assessing Officer has communicated as under: - “Income tac claim.pdf (1.7MB) Ids NCLT claim form 5813810 (1).pdf (2.8MB) RICHFEEL IA03-2024 NCLT Plan Approved Order 20.06.2024 (439KB) Sir Kindly refer to the trailing mail. 2. The assessee has filed copy of NCLT order in one of the rectification application. The perusal of the same shows that the Hon'ble NCLT, Mumbai Bench, vide order dated 20/6/2024 has approved the Resolution Plan in the matter of Application filed under section 30(6), r/w Section 31(1) of the Insolvency & Bankruptcy Code, 2016 read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, between Rajul Mehta & Ors. (Financial Creditor) Vs Richfeel Health & Beauty Pvt Ltd (Corporate Debtor). 2.1 . The Hon'ble NCLT in Para 2& and 29 of the said order held as under 28. The Application IA No 03 of 2024 in CP (IB) No. 1269/2021 is allowed. The Resolution Plan submitted by the consortium of individuals (Ms. Bina Mukesh Shah and Ms. Seema Goel) and passed by the CoC with the requisite majority is hereby approved. It shall become effective from this date and shall form part of this order. It shall be binding on the Corporate Debtor, its employees, members, and creditors, including the Printed from counselvise.com Rich Feel Health and Beauty Pvt. Ltd. 3 Central Government, any State Government, or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan. 29. Accordingly, no person or authority will be entitled to initiate or continue any proceedings with respect to a claim prior to the approval of the Resolution Plan which is not a part of the Resolution plan. Copy of the said order is attached herewith. 3. Further, as per the available record, the claim made by the department before accepting of the resolution Plan by the Hon'ble NCLT, are attached for your ready reference. 4. Submitted for your kind information and necessary action. Thanking You Yours Faithfully AJAY GHANSHYAM KAMBLE DCIT-13(3)(2), Mumbai Enclosure- As above ——— Original Message ——— From: \"MUMBAI.CIT.DR.lTAT9\" Date: Jul 10, 2025 2:36:48 PM Subject: MA 41//M/25 in the case of Rich Feel Health and Beauty Pvt. Ltd. for A.Y. 2018-19 To: \"mumbai.dcitl 3.3.2\" To DCIT 13(3)(2) Mumbai. Sub : MA41//M/25 in the case of Rich Feel Health and Beauty Pvt. Ltd. for A.Y. 2018-19 Printed from counselvise.com Rich Feel Health and Beauty Pvt. Ltd. 4 In this case, the MA 41/M/2025 was filed on the dated 25.06.2025. On perusal to NCLT order dated 20.06.2024 whereby it was stated in MA 41/M/2025 seized vide said order and therefore MA is filed to revive the appeal. However, during the hearing dated 04.07.2025, assessee filed submission which is enclosed herewith along with copy of NCLT order dated 20.06.2024. In this submission, among the other, the assessee has stated that the resolution plan is accepted by NCLT vide said order dated 20.06.2024. Therefore, the question of any appellate proceeding does not survive. In this regard, it is requested to verify the submission and clarify, as to whether instant MA is maintainable. You are requested to file, the reply within 10 days, as the case is listed for hearing on 25.07.2025. 4. Perusing the Miscellaneous Application filed by the Revenue, it is observed that the same is time barred by 36 days, as the same was filed on 5.2.2025, against the order dated 28.6.2024 without making any application for condonation of delay. Thus, the application filed by the Revenue is liable to be dismissed in limine. 5. Even otherwise from the reply submitted by the Assessing Officer, it clearly appears that vide order dated 20.6.2024 the Hon'ble NCLT Mumbai Bench has approved resolution plan in the matter of the assessee filed under section 30(6) read with section 31(1) Insolvency & Bankruptcy Code, 2016 and in paragraph 28 and 29 of the said order, the Hon'ble NCLT clarified that no person or authority will be entitled to initiate or continue any proceedings with regard to the claim made prior to approval plan to the resolution, which is not part of the resolution plan. 6. The Revenue even otherwise, failed to substantiate its application under consideration and reason or fact, as to how and whose guidance or directions, the present application has been filed, which otherwise is unsustainable not only on the point of limitation but also on merit, because the same is based on wrong facts. Printed from counselvise.com Rich Feel Health and Beauty Pvt. Ltd. 5 7. Thus, in view of the above findings, Miscellaneous Application under consideration stands dismissed. Order pronounced in the open Court on 06/01/2026. Sd/- Sd/- (Girish Agrawal) (Narender Kumar Choudhry) ACCOUNTANT MEMBER JUDICIAL MEMBER Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, Mumbai Printed from counselvise.com "