INCOME TAX OFFICER , BELLARY V. MS SAI KRISHNA MINERALS PVT.LTD, HOSPET

ITA 507/BANG/2023

AI Insights

The case involves an appeal by the Income Tax Officer against the appellate order of the National Faceless Appeal Centre, Delhi, which had partly allowed the appeal of M/s. Sai Krishna Minerals Pvt. Ltd. The primary contention was regarding the non-upholding of the original assessment order that included unaccounted E-auction sales. However, the appeal was dismissed due to the corporate debtor undergoing insolvency proceedings, which included a moratorium that prevents any suits from continuing against the corporate debtor during the moratorium period.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470934 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 14-11-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 13-07-2023
• Laws Referred To: Income-tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T. SRINIVAS
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.507/Bang/2023 Assessment year : 2013-14 The Income Tax Officer, Ward 1, Ballari. Vs. M/s. Sai Krishna Minerals Pvt. Ltd., Near Venu Gopal Temple, 3rd Cross, Patel Nagar, Hospet – 583 201. PAN : AAICS 2188 L APPELLANT RESPONDENT Appellant by : Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru. Respondent by : Shri T. Srinivas, CA Date of hearing : 14.11.2024 Date of Pronouncement : 29.11.2024 O R D E R Per Prashant Maharishi, Vice President 1. This appeal is filed by the ITO, Ward 1, Bellary (the assessee/appellant) for the assessment year 2013-14 against the appellate order passed by the National Faceless Appeal Centre, Delhi (NFAC) [ld. CIT(A)] dated 26.05.2023 wherein the appeal filed by assessee against the assessment order dated 23.3.2016 passed u/s. 143(3) of the Income-tax Act, 1961 (the Act) by the ACIT, Circle 1, Bellary (ld. AO) was partly allowed. Therefore, the ld. AO is aggrieved and the only ground is that the ld. CIT(A) did not uphold the order of the ld. AO that in the year of receipt of unaccounted E-auction sale, the loss was allowed. Even otherwise, it was stated to be penal in nature. 2. The brief facts show that assessee is a private limited company which is engaged in the business of trading in iron ore and other, filed its return of income on 30.9.2013 at a total income of NIL. The assessment was ITA No.507/Bang/2023 Page 2 of 3 completed u/s. 143(3) of the Act determining total income of assessee at Rs.5,04,99,438 against which appeal was preferred and allowed. Therefore, the AO is in appeal. 3. At the time of hearing, it has been brought to our notice by letter dated 14.10.2024 that the impugned assessee is undergoing Insolvency proceedings under Insolvency and Bankruptcy Code, 2016 (IBC) wherein the order is passed on 04.9.2024 wherein Interim Resolution Professional (IRP), Mr. Hari Babu Thota having registered address at # 41/1, 2nd Floor, 11th Cross, 8th Main, 2nd Block, Jayanagar, Bengaluru – 560011 is appointed and further as per para 9, moratorium is declared in terms of section 14 of the IBC. 4. In view of the provisions of section 14 of the IBC, 2016, no suits can continue against the corporate debtor, M/s. Sai Krishna Minerals Pvt. Ltd. 5. Therefore, we dismiss the appeal of revenue with liberty granted to the revenue that as soon as moratorium period is over, if the ld. AO wishes to continue with this appeal, necessary application for recall of this order may be made, which shall be dealt with in accordance with law. 6. In view of the above facts, the appeal filed by the ld. AO is dismissed. Pronounced in the open court on this 29th day of November, 2024. Sd/- Sd/- ( KESHAV DUBEY) ( PRASHANT MAHARISHI ) JUDICIAL MEMBER VICE PRESIDENT Bangalore, Dated, the 29th November, 2024. /Desai S Murthy / ITA No.507/Bang/2023 Page 3 of 3 Copy to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "