Addl. CIT, Special Range-4, V. Mosser India Ltd.,

ITA 1568/DEL/2001

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A)-XXI, New Delhi, concerning a penalty levied under section 271(1)(c) of the Income Tax Act for the assessment year 1996-1997. The assessee, M/s. Moser Baer (India) Ltd., represented by the liquidation authority, argued that the appeal had become infructuous due to the company's liquidation. The Revenue, represented by the Ld. Sr. DR, suggested keeping the matter under abeyance. However, citing various Supreme Court and High Court orders, the tribunal found that the liquidation proceedings have an overriding effect over the claims of the revenue, leading to the dismissal of both the appeal and the cross objection as infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113804 (ITAT-DELHI)
• Duration Of Justice: 22 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 25-04-2023
• Assessment Year: 1996-1997
• Appeal Filed On: 22-04-2001
• Other Referred Cases: Civil Appeal no. 4705/2014, ITA No. 793/2019, ITA no. 1204/2018, ITA No. 70/2020, ITA No. 76/2020, ITA No. 80/2022, ITA No. 4995.Del.2016
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Liquidation
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) BEFORE SH. N.K.BILLAIYA, ACCOUNTANT MEMBER AND SH.ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 1568/Del/2001, A.Y. 1996-1997 Addl. CIT, Special Range-4, New Delhi Vs. M/s.Moser Baer (India) Ltd. 63, Ring Road, Lajpat Nagar, New Delhi PAN : Appellant Respondent CO. No. 112/Del/2005, (Arising out of ITA No. 1568/Del/2001, A.Y. 1996-1997) M/s.Moser Baer (India) Ltd. 63, Ring Road, Lajpat Nagar, New Delhi PAN : AAAAA1111A Vs. Addl. CIT, Special Range-4, New Delhi Appellant Respondent Assesseeby Sh. Upwan Gupta, Adv. Revenue by Ms. Raja Rajeshwari R., Sr. DR Date of hearing: 26.04.2023 Date of Pronouncement: 03.05.2023 ORDER Per Anubhav Sharma, JM : The appeal has been preferred by the Revenue against the order dated 20.01.2007 of CIT(A)-XXI, New Delhi (hereinafter referred as 1568.Del.2001 Moser India Ltd. 2 Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No. 156/2000-2001 and Cross objection has raised by assessee. 2. Heard and perused the record. 3. Adjournment application has been moved on behalf of the revenue by Ld. Sr. DR. However, the Ld. AR submitted that the appeal has become infructuous in the light of fact that the assessee company has gone under liquidation. Citing certain orders of Supreme Court of India, Hon’ble High Court and the Co-ordinate Bench of Delhi in regard to the case of assessee it was submitted that it is now consistently held that as a liquidation proceedings have over riding effect over the claim of the revenue, the appeals of the assessee or revenue have become non- consequential. Ld. DR however submitted that the matter may be kept under abeyance. 4. It can be appreciated that the present appeal arises out of the challenge of penalty levied u/s 271(1)(c) of the Income Tax Act. The assessee is not appearing and the Ld. AR is representing the liquidation authority. The record shows corporate Insolvency Resolution Process is pending before NCLT after order dated 14.11.2017. 5. In assessee’s own case Hon’ble Supreme Court while deciding Civil Appeal no. 4705/2014 vide order dated 21.07.2020, Hon’ble Delhi High Court disposing of ITA No. 793/2019 vide order dated 16.03.2022, ITA no. 1204/2018 vide order dated 16.03.2022, ITA No. 70/2020, 76/2020, 80/2022 vide order dated 22.09.2022 and a co-ordinate Bench vide ITA No. 4995.Del.2016 order dated 17.03.2021, disposed of the appeals without adjudicating anything on merits. 1568.Del.2001 Moser India Ltd. 3 6. Thus, in the light of provisions of Insolvency and Bankruptcy Code, 2016 and the aforesaid orders in the case of assessee, the claim of revenue arising out of the proceedings under the Act have become infructous. In the light of aforesaid, the appeal and cross objection are dismissed being infructuous. Order pronounced in the open court on 3 rd May, 2023. Sd/- Sd/- (N.K.BILLAIYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 3 rd .05.2023 *Binita, SR.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI