M/s. Jaypee Infratech Ltd., Noida V. DCIT, Noida

ITA 3615/DEL/2017

AI Insights

The case involves Jaypee Infratech Ltd., which filed appeals against the orders of the Commissioner of Income Tax (Appeals)-I, Noida, concerning the assessment years 2010-11 and 2012-13. The appeals were filed against the assessment orders passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961. During the proceedings, it was brought to the court's attention that Jaypee Infratech Ltd. is undergoing insolvency proceedings before the National Company Law Tribunal (NCLT), Allahabad, and a moratorium has been granted, prohibiting any legal proceedings against the company. The Department of Revenue did not object to the plea of the assessee to keep the appeals in abeyance. The tribunal, referencing the decision of the Hon'ble Supreme Court in the case of Pr. CIT Vs. Monnet Ispat and Energy Limited and the overriding provisions of the IBC, dismissed the appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113053 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 04-06-2017
• Other Referred Cases: Pr. CIT Vs. Monnet Ispat and Energy Limited
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 43; 48

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.3615 & 3616/DEL/2017 Assessment Years 2010-11 & 2012-13 Jaypee Infratech Ltd., Sector-128, Noida Uttar Pradesh v. DCIT, Circle-I, Noida. TAN/PAN: AABCJ9042R (Appellant) (Respondent) Appellant by: Shri Praveen Kumar, CA Respondent by: Mohd. Gayasuddin Ansari, CIT (DR) Date of hearing: 16 01 2023 Date of pronouncement: 16 01 2023 O R D E R PER BENCH : Th e cap tio n ed ap p eals h av e b een fi led b y th e Ass essee ag ain st th e o rd ers o f th e Co mmiss io n er o f In co me Tax (Ap p eals)- I, No id a (‘CIT(A)’ in sh o rt) b o th dated 3 1 .0 3 .2 0 17 arisin g fro m th e asses smen t o rd ers d ated 3 0 .0 3 .2 01 6 an d 2 8 .0 3 .2015 p assed b y th e Assess in g Officer u n d er Sect io n 1 43 (3 ) o f th e In co me Tax Act, 1 9 6 1 (th e Act) co n cern in g AYs 20 1 0-1 1 & 2 0 12 -13 , resp ect iv ely . 2 . Wh en th e matter was call ed fo r h earin g , th e ld . Co u n sel fo r th e assesse e p o in ted o u t th at p ro ceed in g s un d er In solv en cy and Ban k ru p tcy Co d e, 2 0 16 (IBC) are go in g on ag ain st the assesse e b efo re Natio n al Co mp an y Law Trib u n al Alla h ab ad and mo rato riu m as p er th e p rov isio n s o f Sectio n 1 4 o f the IBC h as I.T.As. No.3615 & 3616/Del/2017 2 b een g ran ted . A co p y o f th e o rd er of NCLT g ran tin g mo rato riu m d ated 9 t h Au g u st, 2 0 1 7 pu rsu an t to p ro ceed in g s in it i ated u n der IBC Co d e 2 0 16 was p laced o n reco rd . It was fu rth er po in ted o u t th at as p er th e o rd er o f th e NCLT, mo rato riu m u n d er Sectio n 1 4 o f IBC 2 0 1 6 sh all h av e effec t fro m 0 9 . 0 8 .2 01 7 til l th e co mp le tio n o f CIRP o r u n til a p p rov al o f reso l u tio n p lan b y ad ju d icat in g au th o rity u n d er Sectio n 3 1 (1 ) o f IBC o r u n til o rd er o f l iq u id atio n o f th e assess ee co mp an y u n d er Secti o n 3 3 o f IBC as a case may b e. It h as b e en fu rth er o rd ered th at p en d in g su its o r p ro ceed in gs ag ain st th e asse ssee co mp an y in clu d in g ex ecu tio n o f an y ju d g men t, d e cree o r o rd er in an y Co u rt o f law, Tribu n al, arb itra tio n p en al o r o th er au th o rity , etc . is p ro h ib ited . It was th u s u rg ed th at th e ap peals o f th e asse sse e b e k ep t in ab ey an ce o r in th e a lt ern ativ e wh ere th e Trib u n al d i sp o ses th ese ap p eals a l ib erty b e g ran ted to assessee to seek rev iv a l o f th ese ap pea ls a ft er l ift in g o f mo rato riu m. 4 . Th e Ld . DR fo r th e Rev en u e d id n o t e x p ress an y ob jecti o n to su ch p lea o f th e as sessee . 5 . In th e lig h t o f s ta t u to ry p ro v isio n and in th e lig h t o f d e cis io n o f th e Ho n ' b le Sup reme Co u rt in th e cas e o f Pr. CIT Vs. Mo n n et Isp a t a n d En erg y Limit ed (2 0 1 9 ) 1 0 7 ta xma n n .co m 48 1 an d also in th e lig h t o f th e o v errid in g p ro v isio n o f th e Co d e in terms o f sect io n 2 3 8 o f th e Act, th e assess e e is es to p p ed to p u rsu e th e cap tio n ed ap p eal s. 6 . Fo r su ch reaso n s, th e ap p eal s o f th e assess ee are d is missed with a lib erty to th e ass essee to seek re med ia l measu res in acco rd an ce with la w as an d wh en th e mo rato riu m p erio d is o v er or rev iv al o f th e ass e ssee co mp an y tak e s p lac e. I.T.As. No.3615 & 3616/Del/2017 3 7 . In th e resu lt , th e cap t io n ed ap p eals o f th e ass essee stan d d ismissed . Order pronounced in the open Court on 16/01/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16/01/2023 Prabhat