DCIT, Circle-27(1), New Delhi V. UM Green Lighting P.Ltd, New Delhi

ITA 2340/DEL/2019

AI Insights

The case involves an appeal by the Revenue against UM Green Lighting P. Ltd., concerning an assessment order for the assessment year 2015-16. The appeal was filed following the order of the Commissioner of Income Tax (Appeals)-IX, New Delhi. During the proceedings, it was revealed that the assessee was undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, initiated by operational creditors. A moratorium was declared by the National Company Law Tribunal (NCLT), New Delhi, which included prohibitions on continuing pending suits or proceedings against the assessee. The Revenue acknowledged the applicability of the moratorium but sought the right to revive the appeal post-moratorium or upon changes in the corporate status of the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121672 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 19-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 14-03-2019
• Other Referred Cases: Pr. CIT vs. Monnet Ispat and Energy Limited (2019) 107 taxmann.com 481
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 48; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.2340/DEL/2019 Assessment Year 2015-16 DCIT Circle-27(1) New Delhi. vs. UM Green Lighting P. Ltd. 806 Devika Tower 6-Nehru Place New Delhi TAN/PAN: AABCU2552P (Appellant) (Respondent) Appellant by: Shri Rajiv Bhatnagar, RP Respondent by: Ms. Rajareswari R, Sr.DR Date of hearing: 20 03 2023 Date of pronouncement: 23 05 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capt ione d appeal has bee n fi le d by the Re venue against the orde r of t he C o mmiss ione r o f I nco me Tax (A ppeals)- IX , New D elhi (‘ C IT (A )’ in s h ort ) da ted 10. 12.2 018 aris ing from the assess me nt orde r dat ed 07. 12. 20 17 pass ed by th e Assessing O fficer under Secti on 143 (3) of t he I nco me T ax A c t, 1961 (the A ct) c onc er ning A Y 2015- 16. 2. When the matt er w as ca lled for hea ring, t he R es oluti on Profes si onal (RP ) appearing on behalf of the assessee poi nt ed out that t he assessee has bee n subje cte d t o proc eedi ngs unde r Inso lvenc y and B ankr uptc y Code, 2016 ( IBC ) an d Corpora te Inso lvenc y Res olu ti on Process (C IR P) has been i ni tia ted a gains t I.T.A. No.2340/DEL/2019 2 the assess ee b y the ope ra t io nal c redit or s. It w as pointe d ou t t ha t i n terms of or der dat ed 13. 12.2021 del ivered b y Nat io nal Compan y Law Tri bu nal, N ew D elhi Be nch (N CLT ) a mor at ori um ha s bee n decla red in t he cas e of the assess ee w it h refe re nc e to provisio ns of Sect ion 14 o f t he Insolvenc y C od e. T he ld. RP appearing for t he assessee al so po inte d out as a ne cessar y conse quence of the decla rati on of mo ra torium i n t er ms o f Sect ion 14 o f the C ode, several prohibiti ons have b ee n i mp os ed w hich int er al ia incl ud es cont inuati on o f pe nding s uits or proceedings agai nst t he ass essee incl uding execution of an y j u dgme nt, decree o r ord er b y an y C ourt of L aw , Tribuna l, A rbit rati on Penal or A ut hor it y. The ld. RP thus submit ted tha t in view of prohi bitions i mp osed b y the N C LT o rde r w hich has the overri ding ef fect on the Tr ibuna l, the present proceed ings b y t he Reve nue ag ai nst the asse ssee cann ot con ti nue dur in g th e morator ium pe riod. 3. T he L d . S r. D R o n i t s p a rt su b m it t e d t h at th e p r es en t a p pe a l i n na r r a t e d ci rc u m st a nc e s c a n n o t b e p ur sue d i n v i e w o f t h e o v e r r i d i n g pr o vi si on s o f i n so l v en c y c od e b ut ho w e ve r, p ra y e d fo r li be r ty t o re v i v e t he c a p ti on e d ap pe a l a s a nd w he n t h e m or at ori u m p e r i od i s ov e r or r e v i v a l o f c o m pa ny t a ke s pl a ce . 4. I n t h e li g h t o f s t a t u t o ry pr ov i s i o n a n d i n t he li g h t o f de c i s io n o f t h e H on ' bl e S u pre m e C o u rt i n t h e c as e o f P r. C IT V s. M o nn et Isp at a n d E n e r gy L i m i te d (2 0 1 9) 1 0 7 t ax m a n n. c om 48 1 a nd a l so i n t he l i g ht o f t h e o v er ri di n g p ro v i si o n o f t h e c o de , t h e a ss es se e i s e st o p pe d t o p ur s ue th e c a p t i one d a p p e a l . 5. T h u s, i n v ie w o f t h e mo r a t o r i u m de c l a r e d by N C L T, a ll pr o c e e d i n g s i n t he c o ur t o f l aw , Tr i bu n al e t c . c a n no t c on t i nu e i n vi e w o f t h e o v e r r i d i ng p ro v i si o n s o f I n s ol v e n c y & Ba n kr u pt c y C o de I.T.A. No.2340/DEL/2019 3 a s r e c o g n i z e d i n S ec t i on 1 7 8 (6 ) o f t he A c t . T ha t bei n g t h e p os i t i o n, no u se f u l pu r p os e i s g oi ng t o b e se r v ed i n c on t i n u in g t he pr e se nt pr o c e e d i n g s. T he re fo r e , t h i s a p p e a l n ee d s t o b e co ns i g n ed t o t he re c or d s. 6. F o r suc h re as o n s, th e a p pe a l o f t h e Re ve n u e i s di s m i s se d w i t h a l i b e rt y t o t he Re ve n ue t o se e k r e m e di a l m ea su r e s i n a c c o r d a n ce w it h l a w a s a nd w h e n t he m or at or i u m pe r i o d i s ov e r or o rde r o f t he N CL T i s m od i fi ed o r re vi v a l o f t he a s se s se e c o m pa ny t a k e s p l ac e o r w he re i t i s ot h e r w is e ne c e s sar y t o d o s o i n t h e i nter e s t o f t he p a r t i e s . 7. I n th e r e s ul t , t h e a ppe a l o f t he R e ve n ue is di s mi s se d i n l im i ne fo r s t a t i s t i ca l pur po s es. Order pronounced in the open Court on 23.05.2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 05.2023 Prabhat