Shakti Bhog Snacks Ltd., New Delhi V. ACIT, Central Circle- 27 , New Delhi

ITA 2127/DEL/2019

AI Insights

The case involves multiple appeals filed by M/s. Shakti Bhog Foods Limited and M/s. Shakti Bhog Snacks Limited against the orders of the Commissioner of Income Tax (Appeals)-XXIX, New Delhi. These appeals arose from the assessment orders passed by the Assessing Officer under Section 143(3) read with Section 153A of the Income Tax Act, 1961 for various assessment years. The tribunal noted that the assessee company is undergoing proceedings under the Insolvency and Bankruptcy Code, 2016, initiated by the State Bank of India due to defaults in loan accounts. Given the complexity and the ongoing insolvency proceedings, the tribunal decided to remit the appeals to the CIT(A) for re-evaluation in light of the insolvency proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121703 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 17-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 10-03-2019
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 15; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.607, 608, 609, 610 & 611/DEL/2019 Assessment Years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 M/s. Shakti Bhog Foods Limited, 11 th & 12 th Floor, Pearl Business Park, Netaji Subhash Place, Delhi. v. ACIT, Central Circle-27, New Delhi. TAN/PAN: AAACS4153M (Appellant) (Respondent) I.T.As. No.2125, 2126, 2127, 2128, 2129, 2130 & 2131/DEL/2019 Assessment Years 2009-10, 2010-11, 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 M/s. Shakti Bhog Snacks Limited, 11 th & 12 th Floor, Pearl Business Park, Netaji Subhash Place, Delhi. v. ACIT, Central Circle-27, New Delhi. TAN/PAN: AAGCS4372Q (Appellant) (Respondent) I.T.As. No.684, 685, 686, 687/DEL/2019 Assessment Years 2010-11, 2011-12, 2012-13, 2013-14 DCIT, Central Circle-18, New Delhi. v. M/s. Shakti Bhog Foods Limited, 11 th & 12 th Floor, Pearl Business Park, Netaji Subhash Place, Delhi. TAN/PAN: AAACS4153M (Appellant) (Respondent) Assessee by: None Department by: Shri H.K. Choudhary, CIT-DR Date of hearing: 18 01 2023 Date of pronouncement: 18 01 2023 2 O R D E R PER BENCH : Th e cap tio n ed Cro ss Ap p eals h av e b een fil ed at th e in stan ce o f th e Assesse e an d th e Rev en u e ag ain st th e o rders o f th e Co mmiss io n er o f In co me Tax ( Ap p eals)-XXIX, New Delhi [‘CIT(A)’ in sh o rt], d ated 2 7 .1 1 .2 0 18 (in M/s . Sh akt i Bh o g Fo od s P. Ltd .) an d d ated 2 2 .1 0 .2 01 8 (in M/s. Sh ak ti Bh o g Sn ack s Ltd .) arisin g fro m th e assess men t o rd ers d ated 3 0 .1 2 .2 0 17 and 2 9 .1 2 .20 1 7 resp ectiv e ly p assed b y th e Assess in g Officer (AO) u n d er Sectio n 1 4 3(3 ) r.w. Sectio n 15 3 A o f th e In co me Tax Act, 1 9 61 (th e Act) co ncern in g AYs 20 0 9-1 0 , 20 1 0-1 1 , 2 011 -1 2 , 20 1 2- 1 3 , 2 0 13 -14 , 2 0 1 4 -1 5 an d 2 01 5 -1 6 . 3 . Wh en th e matter was call ed fo r th e h earin g , n on e app eared fo r th e assess ee. It is seen fro m th e reco rd th at mu lt ip le o p po rtu n ities h av e b een g iv en to the assesse e an d th e ma tt er is v ery o ld , th erefo re, we are co n strai n t to p ro ceed th e ma tt er ex- p a rte. 4 . Th e ld . CIT-DR fo r th e Rev en u e in d icated th a t the a sse ssee co mp an y is su b jected to p ro ceed in g s u nd er In so lv en cy and Ban k ru p tcy Co d e, 2 0 16 and certai n o rd ers h av e b een p assed p u rsu an t to ap p lic atio n fi led b y Sta t e Ban k o f In d ia o n acco u n t o f d efau l t in lo an ac co u n ts o f th e co rpo rate d eb to r (assessee) u n d er Sect io n 7 o f th e I n so lv en cy an d Ban k rup tcy Co d e, 2 01 6 seek ing in it ia tio n o f co rp o rate In so lv en cy Reso lu t io n Pro cess (CIRP), d eclarin g mo rato riu m an d fo r ap p o in tmen t In ter i m Reso lu t io n Pro fessio n al (IRP) an d an o rd er d ated 2 2 .09 .2 0 22 h as been p assed b y Natio n al Co mp an y Law Trib un al Prin cip al B en ch New Delh i in ITA No .1 77 0 /20 2 2 an d o th ers in th e ma tt er o f S ta te Ba n k o f In d ia 3 v s. Sh ak ti Bh o g Ltd ., i. e., asses se e h erein . Th e ld. CIT-DR h o wev er su b mitt ed th at ex act p o si tio n s fro m th e p roceed in g s are n o t k n o wn . 5 . We h av e h eard th e su b missio n s mad e o n b eh alf o f th e Rev en u e. Th e Rev en u e h as fi led fo r m-A b ei n g Pub lic An no u n cemen t (Un d er Regu latio n 6 o f th e In so lv en cy and Ban k ru p tcy Bo ard o f In d ia alo n g with th e o rd er p assed b y th e NCLT Prin cip a l Ben ch New Delh i g iv in g n o tice o f o rder o f co mmen ce men t o f Co rp o rate In solv en cy Reso lu tio n Process ag ain st th e assess ee v id e o rd er d at e d CP(IB)-2 4 (PB)/20 1 8 d ated 2 2 .0 9 .20 2 2 o n acco u n t o f d efau l t o f lo an acco u n t o f th e asses see u n d er Sectio n 7 of th e In so lv en cy an d Ban k ru p tcy Cod e, 2 01 6 . Ho wev er, fu ll fa c ts are n o t av ail a b le reg ard in g d eclara tio n o f mo rato riu m p erio d i f an y , in th e ma t t er. 6 . Co n seq u en tly , we co n sid er i t ex p e d ien t to remi t a l l th e cap tio n ed ap p eals to th e fil e o f th e CIT(A) fo r ap prop riate ad ju d icat io n in acco rd an ce with law k eep in g in min d th e p ro v isio n s o f IBC Co d e, 2 0 1 6 . Fo r this p u rp o se, th e CI T(A) sh all tak e in to acco u n t, all o rd ers p assed by NCLT an d sup erio r fo ru ms fo r th e p u rp o ses o f p assin g ap p ro p riate o rd ers. 6 . In th e resu l t, th e resp ect iv e ap p eals o f th e assessee an d Rev en u e are a l lo wed . Order was pronounced in the open Court on 18/01/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /01/2023 Prabhat