DCIT, CIRCLE- 10(1), New Delhi V. Global Energy Pvt. Ltd., New Delhi

ITA 5413/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3608 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 24-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Liquidation
• Section: 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA NO.2551/DEL./2017 (ASSESSMENT YEAR : 2014-15) M/S. GLOBAL ENERGY PVT. LTD., VS. DCIT, CIRCLE 10 (1), 6 TH FLOOR, LE MERIDIAN COMMERCIAL TOWER, NEW DELHI. RAISINA ROAD, NEW DELHI 110 001. (PAN : AACCG1351K) ITA NO.5413/DEL./2017 (ASSESSMENT YEAR : 2014-15) DCIT, CIRCLE 10 (1), VS. M/S. GLOBAL ENERGY PVT. L TD., NEW DELHI. 6 TH FLOOR, LE MERIDIAN COMMERCIAL TOWER, RAISINA ROAD, NEW DELHI 110 001. (PAN : AACCG1351K) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI TARANDEEP SINGH, ADVOCATE REVENUE BY : MS. SUNITA SINGH, CIT DR MS. KIRTI SAN KRATYAYAN, SENIOR DR DATE OF HEARING : 30.09.2021 DATE OF ORDER : 30.09.2021 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : ITA NO.2551/DEL./2017 ITA NO.5413/DEL./2017 2 PRESENT CROSS APPEALS FILED BY THE ASSESSEE AS WELL AS BY THE REVENUE ARE BEING DISPOSED OFF BY WAY OF COMPOSITE ORDER TO AVOID REPETITION OF DISCUSSION. 2. LD. COUNSEL FOR THE ASSESSEE BROUGHT ON RECORD C OPY OF ORDER DATED 02.12.2019 PASSED BY THE NATIONAL COMPA NY LAW TRIBUNAL (NCLT) IN CASE OF VALUELABS LLP VS. M/S. G LOBAL ENERGY PRIVATE LIMITED, AVAILABLE AT PAGES 1 TO 11 OF THE PAPER BOOK, WHEREBY RESOLUTION PROFESSIONAL AS LIQUIDATOR HAS BEEN APPOINTED TO CARRY OUT THE FUNCTIONS OF THE ASSESSE E COMPANY UNDER SECTION 22 (2) OF THE INSOLVENCY AND BANKRUPTCY COD E, 2016(FOR SHORT THE CODE). OPERATIVE PART OF THE ORDER DAT ED 02.12.2019 (SUPRA) IS REPRODUCED AS UNDER :- 21. THE ADJUDICATING AUTHORITY, ON PERUSAL OF THE DOCUMENTS FILED BY THE CREDITOR, IS OF THE VIEW THAT THE CORP ORATE DEBTOR DEFAULTED IN PAYING THE OUTSTANDING UNPAID INVOICES RAISED BY THE PETITIONERS IN TERMS OF THE POWER PURCHASE AGREEMEN T AND ADDENDUMS THERETO AND ALSO PLACED THE NAME OF THE I NSOLVENCY RESOLUTION PROFESSIONAL TO ACT AS INTERIM RESOLUTIO N PROFESSIONAL AND THERE BEING NO DISCIPLINARY PROCEEDINGS PENDING AGAINST THE PROPOSED RESOLUTION PROFESSIONAL, THEREFORE THE APP LICATION UNDER OF SECTION 9 IS TAKEN AS COMPLETE, ACCORDINGLY THIS BE NCH HEREBY ADMITS THIS PETITION PROHIBITING ALL OF THE FOLLOWI NG OF ITEM-I, NAMELY: I. (A) THE INSTITUTION OF SUITS OR CONTINUATION OF PENDING SUITS OR PROCEEDINGS AGAINST THE CORPORATE DEBTOR I NCLUDING EXECUTION OF ANY JUD9M~NT, DECREE OR ORDER IN ANY C OURT OF LAW, TRIBUNAL, ARBITRATION PANEL OR OTHER AUTHORITY ; (B TRANSFERRING, ENCUMBERING, ALIENATING OR DISPOS ING OF BY THE CORPORATE DEBTOR ANY OF ITS ASSETS OR ANY LEGAL RIGHT OR BENEFICIAL INTEREST THEREIN; (C) ANY ACTION TO FORECLOSE, RECOVER OR ENFORCE AN Y SECURITY INTEREST CREATED BY THE CORPORATE DEBTOR I N RESPECT ITA NO.2551/DEL./2017 ITA NO.5413/DEL./2017 3 OF ITS PROPERTY INCLUDING ANY ACTION UNDER THE SECU RITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEM ENT OF SECURITY INTEREST ACT, 2002 (SARFAESI ACT); (D) THE RECOVERY OF ANY PROPERTY BY AN OWNER OR LES SOR WHERE SUCH PROPERTY IS OCCUPIED' BY OR IN THE POSSE SSION OF THE CORPORATE DEBTOR. II. THAT THE SUPPLY OF ESSENTIAL GOODS OR SERVICES TO THE CORPORATE DEBTOR, IF CONTINUING, SHALL NOT BE TERMI NATED OR SUSPENDED OR INTERRUPTED DURING MORATORIUM PERIOD. III. THAT THE PROVISIONS OF SUB-SECTION (1) OF SEC TION 14 SHALL NOT APPLY TO SUCH TRANSACTIONS AS MAY BE NOTIFIED BY TH E CENTRAL GOVERNMENT IN CONSULTATION WITH ANY FINANCIAL SECTO R REGULATOR. IV. THAT THE ORDER OF MORATORIUM SHALL HAVE EFFECT FROM 02.12.2019 TILL THE COMPLETION OF THE CORPORATE INS OLVENCY RESOLUTION PROCESS OR UNTIL THIS BENCH APPROVES THE RESOLUTION PLAN UNDER SUB-SECTION (1) OF SECTION 31 OR PASSES AN ORDER FOR LIQUIDATION OF CORPORATE DEBTOR UNDER SECTION 33, AS THE CASE MAY BE. V. THAT THE PUBLIC ANNOUNCEMENT OF THE CORPORATE IN SOLVENCY RESOLUTION PROCESS SHALL BE MADE IMMEDIATELY AS SPE CIFIED UNDER SECTION 13 OF THE CODE. VI. THAT THIS BENCH HEREBY APPOINTS, MR. L V SHYAM SUNDAR, HAVING ADDRESS AT 3RD FLOOR, NO.17, GANDHI ROAD, ALWARTHIRUNAGAR, OPP. TO VINAYAGAR TEMPLE &. ABOVE SAMYUKTHA SCANS ,CHENNAI,TAMLL NADU, 600087 HAVING REGISTRATION NO. IBBLJIPA-002/IP-N00262/2017-18/107 75 AS INTERIM RESOLUTION PROFESSIONAL TO CARRY THE FUN CTIONS AS MENTIONED UNDER INSOLVENCY & BANKRUPTCY CODE. 3. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. PROVISIONS CONTAINED UNDER SECTION 238 OF THE C ODE ARE HAVING AN OVERRIDING EFFECT OVER ALL OTHER CENTRAL AND STATE STATUTES INCLUDING INCOME-TAX ACT AS HELD BY HONBLE SUPREME COURT IN ITA NO.2551/DEL./2017 ITA NO.5413/DEL./2017 4 CASE OF PCIT VS. MONNET ISPAT AND ENERGY LTD. SLP ( C) NO.6483 OF 2018 ORDER DATED 10.08.2018 BY RETURNING FOLLOWING FINDINGS :- GIVEN SECTION 238 OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016, IT IS OBVIOUS THAT THE CODE WILL OVERRIDE ANY THING INCONSISTENT CONTAINED IN ANY OTHER ENACTMENT, INCL UDING THE INCOME-TAX ACT. 5. IN VIEW OF THE MATTER, SECTION 238 OF THE CODE W ILL HAVE OVERRIDING EFFECT OVER ALL OTHER CENTRAL AND STATE STATUTES INCLUDING THE INCOME-TAX ACT AND ALL THE CLAIMS INCLUDING CLA IM OF THE INCOME-TAX DEPARTMENT UNDER THE INCOME-TAX ACT, 196 1 SHALL BE ENTERTAINED BY THE OFFICIAL LIQUIDATOR U/S 53 (1) O F THE CODE. KEEPING IN VIEW ALL THESE FACTS, LD. AR FOR THE ASS ESSEE STATED AT BAR THAT HE DOES NOT PRESS THIS APPEAL AND SAME MAY BE DISMISSED AS WITHDRAWN. CONSEQUENTLY, APPEAL FILED BY THE AS SESSEE AS WELL AS BY THE REVENUE ARE DISMISSED HAVING BEEN BECOME INFRUCTUOUS. HOWEVER, ASSESSEE AS WELL AS REVENUE ARE AT LIBERTY TO RE-FILE THE APPEAL, IF SO REQUIRED. ORDER PRONOUNCED IN OPEN COURT ON THIS 30 TH DAY OF SEPTEMBER, 2021 AFTER THE CONCLUSION OF THE HEARING THROUGH VIDEO C ONFERENCE. SD/- SD/- (O.P. KANT) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 30 TH DAY OF SEPTEMBER, 2021 TS