Nakoda Limited, Surat V. The Dy. CIT, Circle 1(1)(2), Surat

ITA 45/SRT/2019

AI Insights

Nakoda Limited filed three separate appeals against the orders of the Commissioner of Income Tax (Appeals)-1, Surat, for the assessment years 2011-12, 2012-13, and 2013-14. These appeals were dismissed by the Income Tax Appellate Tribunal, Surat Bench, due to the initiation of Insolvency and Bankruptcy proceedings against Nakoda Limited by Canara Bank. The NCLT had admitted the insolvency petition and imposed a moratorium, which included a prohibition on continuing any legal proceedings against Nakoda Limited. The tribunal noted that the Interim Resolution Professional had not represented the company in the appeals and thus dismissed the appeals as not maintainable under the current circumstances.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302154 (ITAT-SURAT)
• Duration Of Justice: 4 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-02-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 30-01-2019
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No. 377/Srt/2017 (Assessment Year: 2013-14) ITA No. 12/Srt/2018 (Assessment Year: 2012-13) ITA No. 45/Srt/2019 (Assessment Year: 2011-12) (Virtual hearing) Nakoda Limited, 401, 4 th Floor, Union Trade Centre, Beside Apple Hospital, Udhna Darwaja, Ring Road, Surat-395002. PAN No. AAACN 7282 L Vs. A.C.I.T., Circle- 1(1)(2), Surat. Appellant/ assessee Respondent/ revenue Assessee represented by Shri Hiren Vepari, CA Respondent represented by Shri Ashok B. Koli, CIT-DR and Shri Vinod Kumar, Sr. DR Date of hearing 27/02/2023 Date of pronouncement 27/02/2023 Order under Section 254(1) of Income Tax Act PER: BENCH : 1. These three appeals by the assessee are directed against separate orders of learned Commissioner of Income Tax (Appeals)-1, Surat (in short, the ld. CIT(A) dated 16/10/2017, 25/10/2017 and 20/02/2018 for the Assessment years (AY) 2013-14, 2012-13 and 2011-12 respectively. 2. The learned Authorised Representative (ld. AR) of the assessee informed that Insolvency and Bankruptcy proceeding is initiated against the assessee company by secured creditor i.e. Canara Bank has filed a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (I&B Code) before National Company Law Tribunal, Ahmedabad (NCLT). The learned NCLT has passed order on 12/07/2021 in C.P.(IB) No. ITA 377/Srt/2017 Nakoda Limited Vs ACIT & 2 Ors appeals 2 169/NCLT/AHM/2019 under Section 14 of I&B code. The learned NCLT has already appointed Interim Resolution Professional (IRP). And further passed a restrained order in prohibiting, institution of suit or continuation of pending suit or proceeding against corporate debtor (assessee) including execution of any judgment/decree or order in any court of law, Tribunal or Arbitration Panel or other authority. 3. The ld. AR for the assesse has already filed order of ld NCLT dated 12.07.2021 showing the fact that the assessee has been impleaded as Corporate Debtor before the Hon’ble National Company Law Tribunal (NCLT) Ahmedabad by the Financial Creditor- Canara Bank. As noted above the said petition has been admitted on 12.07.2021 by NCLT and we find NCLT had declared moratorium u/s.14 of the I&B code and has prohibited continuation of pending suits or proceedings against the assessee including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority, till the completion of the corporate insolvency resolution process or until the Bench approves the resolution plan under sub-section (1) of Section 31 of I&B Code. In the order the ld NCLT has already appointed Mr. Vikash Parekh Gupta as Interim Resolution Professional (IRP). 4. We find that ld IRP had not impleaded himself to represent the assessee-company in the present appeal, hence, in view of Section 14 of I & B code there cannot be any continuation of any pending ITA 377/Srt/2017 Nakoda Limited Vs ACIT & 2 Ors appeals 3 proceedings before this Tribunal. Hence, we deem it fit to dismiss the appeal of the assessee as not maintainable in the present format. 5. However, liberty is given to the IRP or his successor in interest to implead himself on behalf of the assessee company by filing a Miscellaneous Application before us, if he so desires, at later stage, in which event this appeal shall be restored. With these observations, all the appeal of the assessee are hereby dismissed as not maintainable in the present format. 6. In the result, these appeals of assessee are dismissed. Order pronounced in the open court on 27 th February, 2023. Sd/- Sd/- (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 27/02/2023 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT(A) 4. CIT 5. DR 6. Guard File By order Sr. Private Secretary, ITAT, Surat