OASIS AGRO INFRA LIMITED , BATHINDA V. PR. COMMISSIONER OF INCOME TAX , BATHINDA

ITA 210/ASR/2017

AI Insights

The case involves Oasis Agro Infra Ltd., which appealed against the order of the Principal Commissioner of Income Tax, Bathinda, for the Assessment Year 2013-14. The company was engaged in the plantation of popular trees on leased land in Haryana and had been dissolved by the NCLT prior to the appeal. The dissolution was acknowledged in the appeal, and it was argued that under the Insolvency and Bankruptcy Code, 2016, once a moratorium is declared, no further legal proceedings should continue against the corporate debtor. The Income Tax Department, represented by Sh. Amit Jain, CIT DR, conceded to the abatement of the proceedings but reserved the right to recover dues from the company's assets.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114570 (ITAT-AMRITSAR)
• Duration Of Justice: 6 year(s) 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-08-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 23-04-2017
• Other Referred Cases: M/s Oasis Agro Infra Ltd. in IA No. 572/2020 in CP (IB) Bi, 60/Chd/Pb/2017
• Laws Referred To: Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 210/Asr/2017 Assessment Year: 2013-14 Oasis Agro Infra Ltd., B-Civil Lines, Bathinda [PAN: AABCO 3753G] Vs. The Pr. Commissioner of Income Tax, Bathinda (Appellant) (Respondent) Appellant by : None Respondent by: Sh. Amit Jain, CIT DR Date of Hearing: 22.08.2023 Date of Pronouncement: 23.08.2023 ORDER Per Dr. M. L. Meena, AM: The captioned appeal is filed by the assessee against the order of the ld. Pr. Commissioner of Income Tax, Bathinda dated 06.03.2017 for Assessment Year: 2013-14. ITA No. 210/Asr/2017 Oasis Agro Infra Ltd. v. Pr. CIT 2 2. At the outset, the ld. counsel for the assessee has submitted that the assessee company was engaged in plantation of popular trees on land taken on lease in Haryana and has been dissolved by the NCLT vide its order dated 26.03.2021. 3. The counsel further stated that the company has been finally dissolved by the order dated 21.03.2020 of Chandigarh Bench of the Hon’ble NCLT wherein it has been held as under: “Para 20(i):- “M/s Agro Infra Ltd., the Corporate Debtor, is hereby dissolved with immediate effect”. Copy of the order has been placed in the (Paper Book Pages 1 to 7) 4. The ld. AR has further submitted that it is settled principle of law as enunciated by the Apex Court in the matter of M/s Oasis Agro Infra Ltd. in IA No. 572/2020 in CP (IB) Bi, 60/Chd/Pb/2017 dated 26.03.2021 and Madras High Courts that once the petition filed under “Insolvency and Bankruptcy Code, 2016” is admitted by NCLT and moratorium is declared, no proceedings can be initiated or continue on the corporate debtor. He requested that the proceedings may be abated. ITA No. 210/Asr/2017 Oasis Agro Infra Ltd. v. Pr. CIT 3 5. Per contra, the ld. DR submitted that the appellate proceedings may be abated with a right to the Revenue to proceed with the recovery of the demand out of the assets of the Assessee Company/Corporate Debtor. 6. We have heard the rival contentions, perused the material on record and the impugned order. Admittedly, the appellant company has been dissolved vide order dated 26.03.2021 of the Chandigarh Bench of Hon’ble NCLT vide para 20(i) by observing that M/s Oasis Agro Infra Ltd., the Corporate Debtor, is hereby dissolved with immediate effect. It is settled principle of law as enunciated by the Hon’ble Apex Court that once the petition is admitted by NCLT under Insolvency and Bankruptcy Code, 2016 is admitted by NCLT and moratorium is declared, no proceedings can be initiated or continued on the corporate debtor. In view of that matter, the captioned appellate proceeding against the appellant assessee is abated with immediate effect. However, the department shall have right to recover the tax liability out of the assets of the corporate debtor. Accordingly, the appeal of the assessee stands abated. ITA No. 210/Asr/2017 Oasis Agro Infra Ltd. v. Pr. CIT 4 7. In the result, the appeal of the assessee is disposed of in the terms indicated as above. Order pronounced in the open court on 23.08.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(Appeals) (4) The CIT concerned (5) The Sr. DR, I.T.A.T. True Copy By Order