DCIT, NOIDA V. M/S. JAYPEE SPORTS INTERNATIONAL LTD., NOIDA

MA 235/DEL/2021

AI Insights

The case revolves around a Miscellaneous Application filed by the Department of Revenue challenging a previous ITAT order which dismissed their appeal. The Department contended that the ITAT had incorrectly assumed that the respondent company was under a moratorium as per the Insolvency and Bankruptcy Code, 2016. However, it was argued by the respondent that the company had already ceased to exist due to amalgamation with Jaiprakash Associates Ltd. The court examined the facts, including the amalgamation order by the Allahabad High Court and the corporate insolvency resolution process initiated against Jaiprakash Associates Ltd. by the NCLT.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 846752 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Delhi
• Assessment Year: 2011-2012
• Appeal Filed On: 28-12-2021
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: WRONGLY
• Assessee Lawyers: ASHWINI KUMAR GARG

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘I’: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER MA No.235/Del/2021 Arising out of ITA No.4027/Del/2015 (ASSESSMENT YEAR 2011-12) DCIT, Noida. Vs. M/s Jaypee Sports International Ltd. Sector-128, Noida, Uttar Pradesh, 201304. PAN-AABCJ9037E (Appellant) (Respondent) Assessee by Shri Ashwini Kumar Garg, Adv. Department by Shri Manish Gupta, Sr. DR Date of Hearing 20/03/2026 Date of Pronouncement 25/03/2026 O R D E R PER VIMAL KUMAR, JM: This Miscellaneous Application u/s 254(2) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) filed by the Department of Revenue is against order dated 08.06.2021 of the ITAT in ITA No.4027/Del/2015. 2. Learned Departmental Representative submitted that Hon’ble Tribunal vide order dated 08.06.2021 dismissed the appeal filed by the Department by wrongly assuming the fact that the assessee company has been referred to the National Company Law Tribunal (NCLT) under Insolvency and a Bankruptcy Code, 2016 Printed from counselvise.com 2 MA No.235/Del/2021 (“the code”) and moratorium in terms of section 14 of the Code, was granted by the NCLT, which is not the fact. So the order may be recalled. 3. Ld. Authorized Representative for respondent/assessee submitted that respondent assessee ceased to exist as a company with effect from 01.04.2014 as a result of amalgamation with Jaiprakash Associates Ltd. (“JAL”). The amalgamation was approved by the Hon’ble Allahabad High Court vide their order dated 14.09.2015. All proceedings in respect of the erstwhile Jaypee Sports International Ltd. (JPSI) are, in law, proceedings in respect of the amalgamated company Jaiprakash Associates Ltd. JAL. Corporate Insolvency resolution process u/s 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has since been initiated against JAL by order of the National Company Law Tribunal (“NCLT”) dated 03.06.2024. Part order of NCLT is annexed herewith. As per Para 102 of the said order, moratorium in term of s. 14 of the IBC came into effect from 03.06.2024. 4. From examination of record in light of aforesaid rival contention, it is crystal clear that as per order dated 14.09.2015 of Hon’ble High Court of Allahabad, respondent assessee Jaypee Sports International Ltd. ceased to exist as a company w.e.f 01.04.2014 as a result of amalgamation with Jaiprakash Associates Ltd. All the proceedings in respect of respondent Jaypee Sports International Ltd. are, in law, proceedings in respect of the amalgamated company Jaiprakash Associates Ltd. As per Para No.102 of order dated 03.06.2024 of the National Company Law Tribunal, moratorium in terms of section 14 has been imposed w.e.f 03.06.2024. In view of the above materials facts, the Misc. Application filed by the Department of Revenue being devoid on merit is dismissed. Printed from counselvise.com 3 MA No.235/Del/2021 5. In the result, the Misc. Application of the Department of Revenue is dismissed. Order pronounced in the open Court on 25.03.2026. Sd/- Sd/- (S. RIFAUR RAHMAN) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25.03.2026 *PK, Sr. Ps* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW, DELHI Printed from counselvise.com "