Uniworld Sugar Pvt. Ltd., Noida V. ACIT Circle-03, , Noida

ITA 1679/DEL/2019

AI Insights

The case involves Uniworld Sugars Pvt. Ltd., which appealed against the orders of the Income Tax Officer and the Commissioner of Income Tax (Appeals) concerning additions made to their income for the Assessment Year 2014-15. The additions included substantial amounts attributed to share premium and payments made to a foreign entity. However, the appeal was dismissed on procedural grounds due to the initiation of insolvency proceedings against the company, which triggered a moratorium under the Insolvency and Bankruptcy Code, 2016, preventing any ongoing legal proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130702 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 03-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2019
• Laws Referred To: Income Tax Act, 1961, Insolvency & Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE, SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.1679/Del/2019 (ASSESSMENT YEAR 2014-15) Uniworld Sugars Pvt. Ltd. A-112, Sector-63, Noida Uttar Pradesh-201 301 PAN-AABCU 1204E Vs. ACIT Circle-3, Noida (Appellant) (Respondent) Appellant by None Respondent by Mr. H.K. Choudhary, CIT-DR Date of Hearing 04/09/2023 Date of Pronouncement 11/09/2023 ORDER PER M. BALAGANESH AM: This appeal of the assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals), Muzaffarnagar, [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.603373991270117, dated 19/03/2020 against the order passed by Income Tax Officer, Ward-3(5), Hapur (hereinafter referred to as the ‘Ld. AO’) u/s 143(3) of the Income Tax Act,1961 ITA No.1679/Del/2019 Uniworld Sugars Pvt. Ltd. vs. ACIT Page 2 of 4 (hereinafter referred to as ‘the Act’) on 30/12/2016 for the Assessment Year 2014-15. 2. The assessee has raised the following grounds of appeal :- “1. Addition of Rs.10,49,39,280/- made by the Assessing Officer on account of additions towards the Share Premium amount received and confirmation of the same by the Commissioner of Income Tax (Appeals) is contrary to facts and law and therefore, the addition of Rs.10,49,39,280/- is liable to be deleted. 2. Addition of Rs.1,57,34,870/- on payment made to ED&F Man Treasury Management PLC, U.K. made by the Assessing Officer and confirmation of the same by the Commissioner of Income Tax (Appeals) is contrary to facts and law and therefore, the addition of Rs.1,57,34,870/- is liable to be deleted. 3. The appellant craves leave to add or amend any of the grounds of appeal.” 3. None appeared on behalf of the assessee. We find that the ld. AR of the assessee had filed a letter dated 19.10.2022 which is placed on record stating that the assessee company is under the management and control of Interim Resolution Professional pursuant to Insolvency & Bankruptcy (IBC) Code, 2016 proceedings initiated before the Hon’ble National Company Law Tribunal (NCLT). The said letter also states that the resolution plan framed is under the process of modification under the direction of Hon’ble National Company Law Appellate Tribunal (NCLAT). It was also mentioned in the said letter dated 19.10.2022 that as per section 14(1) of IBC ITA No.1679/Del/2019 Uniworld Sugars Pvt. Ltd. vs. ACIT Page 3 of 4 2016, the assessee company is under the period of moratorium and all proceedings pending before any Court or Tribunal cannot continue. The Form No.36 available in our record is the one signed by the erstwhile Chief Executive Officer of the assessee company. As per Section 14 of the Insolvency and Bankruptcy Code, 2016, no proceedings shall remain pending with any Court or Tribunal, once the Insolvency Resolution Proceedings had been initiated on a Corporate Debtor. It is not in dispute that the assessee company is a Corporate Debtor. The Interim Resolution Professional (IRP) has been appointed in the instant case and the IRP has not impleaded himself before this Tribunal by filing form No.36. Hence, the present appeal in the present format is not maintainable and hence, liable to be dismissed. 4. In view of the above, we deem it fit and appropriate to dismiss this appeal of the assessee as not maintainable with a liberty given to IRP to prefer Miscellaneous Application, if so desired, after the completion of Insolvency Resolution Process, in which event, this appeal shall be restored. ITA No.1679/Del/2019 Uniworld Sugars Pvt. Ltd. vs. ACIT Page 4 of 4 5. In the result, appeal of the assessee is dismissed as not maintainable. Order pronounced in the open court on 11 th September, 2023. Sd/- Sd/- (CHANDRA MOHAN GARG) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 11/09/2023 Pk/sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI