Asian Colour Coated Ispat Ltd., Gurgaon V. DCIT, Central Circle- II , Faridabad

ITA 4674/DEL/2018

AI Insights

The case involves Asian Colour Coated Ispat Ltd., which filed an appeal against the order of the Commissioner of Income Tax (Appeals)-II, Gurgaon, arising from an assessment order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2012-13. The appeal was complicated by the fact that the company was undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, with a moratorium declared by the National Company Law Tribunal (NCLT), which prohibited all legal proceedings against the company. The Income Tax Appellate Tribunal (ITAT) acknowledged the moratorium and dismissed the appeal, allowing the company to revive the appeal post-moratorium or upon modification of the NCLT order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121464 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-03-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 24-06-2018
• Other Referred Cases: Pr. CIT vs. Monnet Ispat and Energy Limited (2019)
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P.P. SIDHARTH
• Section: 6; 201; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.4674/DEL/2018 Assessment Year 2012-13 Asian Colour Coated Ispat Ltd., 26-P, Sector-33, Gurgaon. vs. DCIT, Central Circle-II, Faridabad. TAN/PAN: AAFCA1873K (Appellant) (Respondent) Appellant by: Shri Ved Jain, Adv. Shri Aman Garg, CA Respondent by: Shri P.P. Sidharth, CIT-DR Date of hearing: 13 03 2023 Date of pronouncement: 28 03 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he cap ti oned a ppeal has be en file d by the A ssess ee against the or de r of t he Commi ssioner o f Income T ax ( A ppeals )-II, G urgaon ( ‘C IT (A )’ in sho rt ) bot h date d 27. 04. 2018 ari si ng fro m the assess me nt or der da ted 31. 03. 2015 pa ssed by the Assessing 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 Y 2012- 13. 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 ptc y 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.A. No.4674/DEL/2018 2 been gra nted. A cop y of the order of NCL T grantin g mo ratoriu m dated 19. 10.2 020 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 the c omple ti on of CIRP o r until approval of res ol ut io n 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 alt erna ti ve w here the Tr ibu nal di spos es these appeals a libert 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. 3. T he L d . S r . D R a l so e n do r s ed th e a ve r m e nt s ma d e in th e e - m a i l o f t h e as se ss e e a n d su b m i t t e d t h at a n a pp li c a ti o n fo r l i qu i d a t i on h a s be e n fi l e d be fo re t h e N a t i o na l Co m p a ny L a w Tr i bu n a l, N e w D e l hi Be nc h by t h e F i n a n ci a l c re di t o r n a m e ly S t a t e Ba nk of I nd i a . T he a pp l i ca t i on m ov e d b y S BI u n de r s e c ti o n 7 o f t h e c o de se ek in g i ni ti a t io n o f Co rp o ra t e I ns ol ve n c y Re sol ut i o n P ro cess ( C I RP ) w hi c h ha s b ee n ad mi t t ed a nd t he D e l h i B e n c h o f N CL T by i ts ord er d a t e d 06 . 0 4. 2 0 2 1 h a v e de c l a r e d m ora t o r i u m i n t er ms o f s ect i o n 1 4 o f t he In s ol ve nc y a n d B a n kr u pt c y C o d e , 201 6 a s pe r pa r a 3 4 o f it s or d e r. 4. T he L d. S r. D R a c c ord in gl y s u b m i t t e d t ha t t h e p r es en t a p pe al i n su c h ci rc u m st a n c es c a nn ot b e p u r s ue d i n v i e w o f t h e o v e r r id in g pr o vi si on s o f i n so l v en c y c od e b ut ho w e ve r, p ra y e d fo r li be r ty t o I.T.A. No.4674/DEL/2018 3 re v i v e t he c a p ti on e d ap pe a l a s a nd w he n t h e m or at ori u m p e r i od i s ov e r or r e v i v a l o f c o m pa ny t a ke s pl a ce . 5. I n t h e li g h t o f s t a t u t o ry pr ov i s i o n a n d i n t he li g h t o f de c i s io n o f t h e H on ' bl e S u pre m e C o u rt i n t h e c as e o f P r. C IT V s. M o nn et Isp at a n d E n e r gy L i m i te d (2 0 1 9) 1 0 7 t ax m a n n. c om 4 81 a nd a l so i n t he l i gh t o f t he o ve rr i d i ng pr ov i s i o n o f t h e c o d e in t e r m s o f Se c t i o n 23 8 o f t h e A c t , th e a s se ss e e i s es t o p pe d to p u rs u e t h e c a p t io ne d a pp e a l. 6. T h u s, i n v ie w o f t h e mo r a t o r i u m de c l a r e d by N C L T, a ll pr o c e e d i n g s i n t h e c ou r t o f la w , Tr i bu n al e t c . ca nnot c o n t in u e i n t he l ig ht o f S e c ti on 17 8 (6 ) o f t h e A c t. T h a t b e in g t he p o si t i o n, no u se ful pu r po se i s g oi ng t o be se rv e d i n c on t i nu i n g t h e pr es en t p r oc e e d i n g s. Th e re fo r e , t h i s a p p ea l n e e d s t o b e c o n si g n e d t o t he re co r d s. 7. F o r suc h r e as o n s, t h e a p pe a l o f t he a s se s se e i s d i s m i ss ed w i t h a l i b e rt y t o t he a s se s se e t o se ek re m e di a l m e a su r e s i n a c c or d a n ce w it h l a w a s a nd w h e n t he m or at or i u m pe r i o d i s ov e r or o rde r o f t he N CL T i s m od i f i ed o r re vi v a l o f t he a s se s se e c o m pa ny t a k e s p l ac e o r w he re i t i s ne c e ss ar y t o do s o i n t h e i n t er e st o f the p a rt i e s . 8. I n t h e re su l t , t h e a p pe a l o f t h e a s se ss e e i s d i sm i s se d in l i mi ne fo r s t a t i s t i ca l pur po s es. Order was pronounced in the open Court on 28.03.2023. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 03.2023 Prabhat