FUTURE ENTERPRISES LIMITED, MUMBAI V. CIRCLE-9(3)(2), NOW MERGED WITH CIRCLE-1(3)(1), MUMBAI

ITA 254/MUM/2023

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Future Enterprises Limited appealed against an order passed by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2013-14. During the proceedings, it was disclosed that the company was undergoing the Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code, 2016, and a moratorium had been declared by the National Company Law Tribunal (NCLT), preventing any legal actions against the company. The Tribunal referenced a similar case, ACIT, CC-2(4) Vs. M/s Wizcraft International Entertainment Pvt. Ltd., to support the decision to dismiss the appeal under the moratorium provisions of the IBC.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130174 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 17-05-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 24-01-2023
• Other Referred Cases: ACIT, CC-2(4) Vs. M/s Wizcraft International Entertainment Pvt. Ltd.
• Laws Referred To: Insolvency and Bankruptcy Code 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

P a g e | 1 ITA No.254/Mum/2023 Future Enterprises Limited Vs. Circle 9(3)(2) IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, JUDIICAL MEMBER ITA No.254/Mum/2023 (A.Y. 2013- 14) Future Enterprises Limited, Ground Floor, Knowledge House, Off Jogeshwari Vikhroli Link Road, Shyam Nagar, Jogeshwari East, Maharashtra- 400060 Vs. Circle 9(3)(2) [ n o w m e r g e d w i t h C i r c l e 1 ( 3 ) ( 1 ) ] Room No. 535, 5 th Floor, Aaykar Bhavan, M.K. Road, Mumbai - 400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACP6317L Appellant .. Respondent Appellant by : Rashmi Vyas Respondent by : Ankush Kapoor Date of Hearing 18.05.2023 Date of Pronouncement 24.05.2023 आदेश / O R D E R Per Amarjit Singh (AM): This appeal is filed by the assesse against the order passed by the NFAC, Delhi, dated 23.12.2022 for A.Y. 2013-14. 2. At the time of hearing the ld. Representatives has brought to the knowledge of the bench that case of the assessee has been referred to the Corporate Insolvency Resolution Process under IBC-2016 and also furnished the copy of order of the NCLT dated 27.02.2023. It is noticed that in the case of the assessee the matter is pending before the Insolvency Professional in terms of Insolvency and Bankruptcy Code 2016 (the ‘Code’) and moratorium period has been declared as per Sec. 14 of the Code. P a g e | 2 ITA No.254/Mum/2023 Future Enterprises Limited Vs. Circle 9(3)(2) 3. The National Company Law Tribunal has passed order u/s 14 of Insolvency and Bankruptcy Code 2016 as referred supra declaring moratorium period, which prohibit institution of suits or any continuation of pending suits or any judgment, decree, order in any court of law, Tribunal, arbitration panel or other authority against the corporate debtor. Therefore, we find that as per the provision of Sec. 14 of IBC-2016 till the conclusion of proceedings under IBC 2016 no suit or proceedings can be continued against the corporate debtor. 4. After taking into consideration the decision of coordinate bench on the similar issue and identical facts in the case of ACIT, CC-2(4) Vs. M/s Wizcraft International Entertainment Pvt. Ltd. vide ITA No. 1356/Mum/2021 dated 06.06.2022 we dismiss the present appeal filed by the assessee in terms of the provisions of Sec. 14 of the code with liberty to the assessee that as soon as the moratorium period is over the assesse may prefer the appeal afresh or recall the present appeal. 3. In the result, the appeal of the assesse is dismissed. Order pronounced in the open court on 24.05.2023 Sd/- Sd/- (Sandeep Singh Karhail) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 24.05.2023 Rohit: PS P a g e | 3 ITA No.254/Mum/2023 Future Enterprises Limited Vs. Circle 9(3)(2) आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीिीय अतिकरण/ ITAT, Bench, Mumbai.