M/s. Cosmic Ferro Alloys Limited. , Kolkata V. DCIT, Cir-3(1), Kolkata. , Kolkata

ITA 635/KOL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7971 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-12-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 26-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA ी राजेश क ु मार, लेखा सट य एवं ी संजय शमा या यक सद य के सम [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. Nos. 635, 636 & 637/Kol/2023 Assessment Years: 2012-13, 2014-15 & 2016-17 M/s Cosmic Ferro Alloys Limited (PAN: AACCC 1730 C) Vs. DCIT, Circle-3(1), Kolkata Appellant / )अपीलाथ ( Respondent /(!"यथ ) Date of Hearing / स ु नवाई क% त'थ 13.12.2023 Date of Pronouncement/ आदेश उ*घोषणा क% त'थ 05.04.2024 For the Appellant/ नधा 0रती क% ओर से Shri Sunil Surana, A.R For the Respondent/ राज व क% ओर से Shri S. Dutta, CITDR ORDER / आदेश Per Rajesh Kumar, AM: These are the appeals preferred by the assessee against the separate orders of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 10.05.2023 for the AYs 2012-13, 2014-15 & 2016-17. 2. The common issue raised in all these appeals filed by the assessee is against the order of Ld. CIT(A) dismissing the appeal as infructuous on the ground that Kolkata Bench of National Company Law Tribunal has passed an order on 16.01.2018 under Insolvency and Bankruptcy Code, 2016. 2 I.T.A. Nos.635 to 637/Kol/2023 Assessment Year: 2012-13, 2014-15 & 2016-17 M/s Cosmic Ferro Alloys Limited. 3. Facts in brief are that the assessee company has defaulted in the payment of debts due to City Bank and consequent to which the City Bank had filed an application before NCLT , Kolkata to initiate the proceedings under Corporate Insolvency Resolution Process u/s 7 of Insolvency and Bankruptcy Code, 2016 and accordingly NCLT has passed an order on 16.01.2018 thereby all the existing statutory liabilities to various Govt Deptts. including income taxdept. have been extinguished . The issue has also been decided in assessee’s own case in ITA no. 2017/Kol/2019 on the basis of the same order of NCLT. 4. The grievance of assessee is that the Ld. CIT(A) has dismissed the appeal as infructuous instead of directing the AO to delete the additions and demand of income tax . In our opinion, once the order has been passed by NCLT under Insolvency and Bankruptcy Code, 2016 under Income Tax Act, all the statutory dues on account of income tax, Sales Tax,/VAT/GST, Excise Duty due to various Govt Departments of the Govt are extinguished. Therefore, we find merit in the appeals of the assessee that instead of dismissing the appeals as infructuous, the additions and the Ld. CIT(A) should have deleted the demand. Therefore, accepting the prayers of the assessee,we hereby set aside the order of Ld. CIT(A) and direct the AO to delete the demand raised by the assessee. Consequently all the appeals of the assessee were allowed. 5. In the result, all the appeals of the assessee are allowed. Order is pronounced in the open court on 5 th April, 2024 Sd/- Sd/- (Sonjoy Sarma /संजय शमा ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 5 th April, 2024 SB, Sr. PS 3 I.T.A. Nos.635 to 637/Kol/2023 Assessment Year: 2012-13, 2014-15 & 2016-17 M/s Cosmic Ferro Alloys Limited. Copy of the order forwarded to: 1. Appellant- M/s Cosmic Ferro Alloys Ltd., C/o, Rajesh Mohan & Associates, Unit No. 18, 5 th Floor, Bagati House, 34, Ganesh Chandra Avenue, Kolkata- 700013. 2. Respondent – DCIT, Circle-3(1), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata