M/s Twenty First Century Wire Rods Ltd., Mumbai V. ITO, Delhi

ITA 3698/DEL/2012

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9366 (ITAT-DELHI)
• Duration Of Justice: 9 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 15-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 144; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER and SHRI AMIT SHUKLA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.3698/Del./2012 (ASSESSMENT YEAR : 2008-09) M/s. Twenty First Century Wire Rods Ltd., vs. ITO, Ward 16 (4), 501, Garden View, 5 th Floor, Gulmohar Park, New Delhi. Gulmohar Road, J.V.P.D., Juhu, Mumbai 400 049. ITA No.4128/Del./2012 (ASSESSMENT YEAR : 2008-09) ITO, Ward 16 (4), vs. M/s. Twenty First Century Wire Rods Ltd., New Delhi. 501, Garden View, 5 th Floor, Gulmohar Park, Gulmohar Road, J.V.P.D., Juhu, Mumbai 400 049. (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Savan Saxena, Advocate REVENUE BY : Shri H.K. Choudhary, CIT DR Date of Hearing : 02.02.2022 Date of Order : 02.02.2022 O R D E R PER AMIT SHUKLA, JM : Aforesaid cross appeals have been filed by the assessee as well as Revenue against the impugned order dated 28.05.2012, passed by the ld. CIT (Appeals)-XIX, New Delhi for the quantum of assessment 2 ITA No.3698/Del/2012 ITA No.4128/Del/2012 passed under section 144 of the Income-tax Act, 1961 (for short ‘the Act’) for the assessment year 2008-09. 2. It has been brought on record that in the case of the assessee company, National Company Law Tribunal (NCLT) vide judgment dated 12.09.2018 have granted moratorium in terms of section 14 of Insolvency and Bankruptcy Code 2016 (for short ‘the Code’). Ld. DR also admitted that now, in view of the judgment of NCLT, no suit or appeal can be pursued including the pending disputes. 3. We have perused the judgment (supra) of NCLT in the case of the assessee company wherein petition was filed under section 10 of the Code to initiate insolvency resolution process and directions have been issued for activating the moratorium u/s 14 of the Code. Para 27 of the said judgment reads as under :- “27. We also declare moratorium in terms of section 14 of the Code. A necessary consequence of the moratorium flows from the provisions of section 14(1)(a),(b), (c) & (d) and thus the following prohibitions are imposed which must be followed by all and sundry :- “(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 3 ITA No.3698/Del/2012 ITA No.4128/Del/2012 (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession f the corporate debtor.” 4. In view of the above, both the appeals are dismissed with a liberty to both the assessee as well as Revenue to revive the said appeals subject to the further order of the NCLT. Order was pronounced in open court on 2 nd day of February, 2022 after the conclusion of the hearing. Sd/- sd/- (ANIL CHATURVEDI) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 02.02. 2022 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A-XIX, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.