FUSION CONBUILD PVT. LTD.,NOIDA V. ACIT, CIRCLE- 9(2), NEW DELHI

ITA 1313/DEL/2020

AI Insights

M/s Fusion Conbuild (P) Ltd. appealed against an order from the CIT(A)-13, Delhi, which arose from an assessment order under Section 143(3) of the Income Tax Act, 1961, by ACIT, Circle-9(2). The core issue was the enforcement of a tax demand for the Assessment Year 2016-17, which the appellant argued was extinguished due to the approval of a resolution plan under the Insolvency and Bankruptcy Code, 2016. The resolution plan was sanctioned by the NCLT, concluding the insolvency proceedings. The appellant's counsel argued that, following the Supreme Court's precedent, any claims, including tax liabilities, prior to the resolution plan's approval are extinguished, rendering the tax demand and thus the appeal infructuous.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34410 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Other Referred Cases: Ghanashaym Mishra & Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: RAKESH GUPTA
• Section: 143(3)

Judgement Text

"P a g e | 1 ITA No.1313/Del/2020 M/s Fusion Conbuild (P) Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA Nos.1313/Del/2020 (A.Y. 2016-17) M/s Fusion Conbuild (P) Limited, 208, Second Floor, Savita Vihar Sikka Mansion LSC Savita Vihar, New Delhi 110095 Vs. ACIT, Circle -9(2) Delhi 110092 \u0001थायी लेखा सं./जीआइआर सं./PAN/GIR No.: AABCF5804F Appellant .. Respondent Appellant by : Dr. Rakesh Gupta, Adv . Sh. Somil Agarwal, Adv. Respondent by : Sh. Om Prakash, Sr. DR Date of Hearing 07.01.2025 Date of Pronouncement 07.01.2025 O R D E R PER MADHUMITA ROY: (JM): The appeal filed by the assessee is directed against the order dated 24.02.2020 passed by the Ld. CIT(A)-13, Delhi, arising out from the assessment order dated 29.12.2018 under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by ACIT, Circle-9(2) for Assessment Year 2016-17. P a g e | 2 ITA No.1313/Del/2020 M/s Fusion Conbuild (P) Ltd. 2. The assessee before us is subjected to insolvency resolution proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC), a resolution plan whereof was approved by the Committee of Creditors (COC) which was subsequently sanctioned by the Hon’ble National Company Law Tribunal (NCLT), conclusively concluding the insolvency proceedings under Section 31(1) of the IBC by and under its order dated 12.06.2024. 3. The case of the assessee is this that the demand now sought to be enforced by the revenue relate to the period prior to the resolution plan’s approval is, therefore, extinguished by the operation of law as already decided by the Hon’ble Apex Court in the case of Ghanashaym Mishra & Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited, reported in (2021) 9 SCC 657 wherein it has been held that all claims, including statutory dues, predating the resolution plan’s approval, stand extinguished. Thus, taking into consideration this particular aspect of the matter, the statutory dues, including tax liabilities, pertaining to the period before resolution plan approved cannot survive. 4. It is contended by the Ld. Counsel appearing for the assessee that having regard to this particular aspect of the matter that the demand raised prior to the approval of the resolution plan are extinguished in terms of Section 31(1) of IBC the appeal becomes infructuous. Such submissions made by the ld. AR has not been controverted by the Ld. DR. 5. Having regard to the facts and circumstances of the matter and particularly the judgment passed by the Hon’ble Supreme Court in the case of Ghanashaym Mishra & Sons Private Limited Vs. Edelweiss Asset P a g e | 3 ITA No.1313/Del/2020 M/s Fusion Conbuild (P) Ltd. Reconstruction Company Limited (supra) we find that the demand raised in the instant appeal pertains to the prior period to the approval of the resolution plan i.e. for Assessment Year 16-17 is extinguished under Section 31(1) of IBC. Thus, as the instant appeal becomes infructous the same is dismissed as infructous. 6. The appeal of the assessee is dismissed as infructuous. Order pronounced in the open court on 07.01.2025 Sd/- (M. Balaganesh) Sd/- (Madhumita Roy ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 07.01.2025 PS: Rohit Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "