JEWEL GARMENTS PVT. LTD., FARIDABAD V. ITO, WARD- 2(3), FARIDABAD

ITA 3074/DEL/2018

AI Insights

Jewel Garments Pvt. Ltd. filed appeals against the orders of the Commissioner of Income Tax (Appeals), Faridabad, which arose from the assessment orders passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the assessment years 2009-10 and 2010-11. During the hearing, it was brought to the tribunal's attention that proceedings under the Insolvency and Bankruptcy Code, 2016 were ongoing against the assessee before the National Company Law Tribunal, Allahabad, and a moratorium had been granted. The tribunal considered the statutory provisions of the IBC and the Supreme Court's decision in Pr. CIT Vs. Monnet Ispat and Energy Limited, and decided to dismiss the appeals, allowing the assessee to seek revival of the appeals post-moratorium.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113052 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 17-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 01-05-2018
• 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: Revenue
• Court: TRIBUNAL

Judgement Text

16IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.3073 & 3074/DEL/2018 Assessment Years 2009-10 & 2010-11 Jewel Garments Pvt. Ltd., Plot No.29, DLF Industrial Area, Phase-2, Near NHPC Chowk, Faridabad. v. ITO, Ward-2(3), Faridabad. TAN/PAN: AABCJ9694B (Appellant) (Respondent) Appellant by: Shri Vivek Bansal, Adv. Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 18 01 2023 Date of pronouncement: 15 02 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M. : T he c apti oned appea ls hav e b ee n file d by the Ass essee agains t t he orders of t he C ommi ss io ner of Income Tax (A ppeals ), Far idaba d ( ‘C IT (A ) ’ i n s hort ) both dated 27. 03. 2018 ar isi ng fro m the assess ment orders dat ed 3 1. 12. 2016 passed by t he Assessi ng 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 Ys 2009- 10 & 20 10-1 1, respect ivel y. 2. When t he matte r w as call ed for he arin g, the ld. Couns el f or the as sessee pointed out t ha t pro ce edin gs un de r Insolve nc y and Bankru pt cy Code, 2016 ( IB C) are goi ng on agai nst the assesse e be fore Na tional Compan y L aw Trib una l A lla hab ad and mor at or iu m as per the p rovis ions of Secti on 14 of the IB C has I.T.As. No.3073 & 3074/Del/2018 2 been gra nted. A cop y of the order of NCL T grantin g mo ratoriu m dated 15. 09.2 022 purs uan t t o proc eedings in it iate d unde r IBC Code 2016 w as placed on recor d. It w as f urt he r poi nte d out that as pe r the orde r o f t he NC LT , morat orium unde r Secti on 1 4 of IBC 2016 s hal l ha ve effec t f rom 09. 08. 2017 til l th e c omple ti on of CIRP o r until approval of res ol ut ion pl an b y a dj udicat ing auth ori ty un der Se cti on 3 1(1) of IB C or unt il ord er of l iquidati on of t he assess ee comp an y unde r Se ct i on 33 of I BC as a case ma y be. It has been fu rt her ord ered t hat pen ding s ui ts or procee di ngs agains t the assessee compa n y incl udi ng ex ecut io n of a n y judgment, decree o r orde r i n any C our t of law , Tr ibu nal, ar bi trati on penal o r other auth ori ty, etc. is p rohibi ted. It w as t hus urged t ha t t he a ppeals of t he asse ssee be kep t i n abe yance or i n the a lte rna tive w he re t he T ribunal dis pos es these appea ls, a libe rt y be g ra nted t o asses see to seek revival of these appea ls a ft er lift ing of mora tori um. 4. T he L d. D R f or the R evenue did not exp ress a ny objecti on t o suc h plea of the assessee. 5. In the l ight o f s tat ut ory p rovis i on a nd i n the light of de cis ion of the H on' ble Supre me Court in the cas e of Pr. C IT Vs. Mon net Is pa t and E ner gy L im it ed (201 9) 107 taxm ann. com 481 and a lso in the li ght of the ove rriding provisi on of t he Code in te rms of sect io n 238 of th e A ct, the assess e e is es topped to purs ue the capti oned appeal s. 6. For such reas ons, the a ppeals of t he assess ee are dis m isse d w ith a li bert y to the ass essee t o seek re medial measures i n accorda nce w i th la w as and w he n the mo ratori um pe riod is over o r re vi val of the ass e ssee compan y ta ke s place. I.T.As. No.3073 & 3074/Del/2018 3 7. In t he re sult, the capt ione d a ppeals o f the assessee sta nd dis mi ssed. Order pronounced in the open Court on 15/02/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /02/2023 Prabhat