Three C Shelters P.Ltd, New Delhi V. ACIT, Circle-25(1), New Delhi

ITA 6535/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5590 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I1
• Assessment Year: 2014-2015
• Appeal Filed On: 11-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH I-2 NEW DLEHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO. 6535/DEL/2018 ASSESSMENT YEAR: 2014-15 THREE C SHELTERS P. LTD., VS. ACIT, CIRCLE 25(1) , C/O SANJIV SAPRA & ASSOCIATES LLP, NEW DELHI. C-763, NEW FRIENDS COLONY, NEW DELHI. PAN : AADCT7054P (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: SH. SUKESH KUMAR JAIN, CIT/DR DATE OF HEARING: 20.09.2021 DATE OF ORDER : 20.09.2021 ORDER PER K. NARASIMHA CHARY, J.M. THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2014-15 IS DIRECTED AGAINST THE ASSESSMENT ORDER DATED 30.08.2 018 IN PURSUANCE TO THE DIRECTIONS OF LD. DISPUTE RESOLUTION PENAL-2, N EW DELHI (DRP) DATED 10.07.2018. 2. WHEN THE MATTER IS CALLED, NEITHER THE ASSESSEE NOR ANY AUTHORISED REPRESENTATIVE ENTERED APPEARANCE. IT COULD BE SEEN FROM THE RECORD THAT THE NOTICE WAS SENT TO THE ADDRESS GIVEN IN FORM NO . 36. IF THE ASSESSEE IS AVAILABLE IN SUCH ADDRESS, SUCH NOTICE SHOULD HAVE BEEN SERVED ON THE 2 ASSESSEE. IF FOR ANY REASON, THE ASSESSEE IS NOT AV AILABLE THERE, IT IS FOR THE ASSESSEE TO MAKE ARRANGEMENTS FOR SERVICE OF SUCH N OTICE BY FURNISHING THE ADDRESS WHERE THE ASSESSEE WOULD BE AVAILABLE, OR TO DELIVER IT TO SOME AUTHORISED PERSON, OR BY MAKING REQUEST TO THE POSTAL DEPARTMENT TO DETAIN THE MAIL TILL THE ASSESSEE CLAIMS THE SAM E. SINCE THE ASSESSEE DOES NOT SEEM TO HAVE ADOPTED ANY OF THESE METHODS, WE ARE THE CONSIDERED OPINION THAT NO TIME COULD BE GRANTED. B ASING ON THE RECORD WE PROCEED TO HEAR THE COUNSEL FOR REVENUE AND DECI DE THE MATTER ON MERITS. 3. A PERUSAL OF RECORD REVEALS THAT ON 03.08.2021, SHRI CHANDRA PRAKASH, RESOLUTION PROFESSIONAL OF THREE C SHELTER S PVT. LTD., FILED A LETTER STATING THAT VIDE ORDER DATED 20.07.2020 READ WITH 16.10.2020, THE NATIONAL COMPANY LAW TRIBUNAL, NEW DELHI (NCLT) ORD ERED COMMENCEMENT OF THE CORPORATE INSOLVENCY RESOLUTION PROCESS (CRIP) OF THREE C SHELTERS PVT. LTD. (ASSESSEE) UNDER THE PRO VISIONS OF INSOLVENCY AND BANKRUPTCY CODE, 2016 AND APPOINTED MR. AMRAPAL AS THE INTERIM RESOLUTION PROFESSIONAL OF THE CORPORATE DEBTOR AND SUBSEQUENTLY BY ORDER DATED 11.03.2020, NCLT REPLACED AMRAPAL BY MR . CHANDRA PRAKASH. IT IS FURTHER STATED IN THE LETTER THAT MR. CHANDRA PRAKASH HAS BEEN DISCHARGING HIS DUTIES AS THE RESOLUTION PROFESSION AL OF CORPORATE DEBTOR. HE FURTHER FILED AN ORDER DATED 16.10.2020 WHERE UN DER A MORATORIUM HAS BEEN IMPOSED IN TERMS OF SECTION 14 OF THE CODE. 4. LD. DR DOES NOT DISPUTE THIS FACTUAL POSITION. 5. IN VIEW OF THE INITIATION OF THE CORPORATE INSOL VENCY RESOLUTION PROCESS IN RESPECT OF THE ASSESSEE AND THE MORATORI UM IMPOSED, NO PROCEEDINGS AGAINST THE CORPORATE DEBTOR COULD BE P URSUED NOR THE ASSETS 3 OF CORPORATE DEBTOR COULD BE TRANSFERRED, ENCUMBERE D, ALIENATED OR DISPOSED OF, NO ACTION FOR FORECLOSURE, RECOVERY AN D ENFORCEMENT OF SECURITY COULD BE TAKEN AND LASTLY, THE RECOVERY OF ANY PROPERTY BY AN OWNER OR LESSOR COULD BE PURSUED. 6. IN GHANSHYAM MISHRA & SONS VS. EDELWEISS, IN CIV IL APPEAL NO. 8129/2019, HONBLE SUPREME COURT HELD THAT ANY CRED ITOR INCLUDING CENTRAL/STATE GOVERNMENT OR LOCAL AUTHORITY IS BOUN D BY THE RESOLUTION PLAN AS APPROVED BY THE ADJUDICATING AUTHORITY U/S. 31(1) OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 AND THAT THE CENTRAL AND STATE GOVERNMENT OR LOCAL AUTHORITY TO WHICH THE OPERATIONAL DEBT IS OW ED, SHALL BE THE OPERATIONAL CREDITOR VIS A VIS THE COMPANY. 7. IN THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THAT THE CROWN DEBT INVOLVED IN THIS APPEAL IS SUBJECT TO CO RPORATE INSOLVENCY RESOLUTION PROCESS ALREADY STOOD INITIATED AGAINST THE ASSESSEE WHO HAPPENS TO BE THE CORPORATE DEBTOR AND THEREFORE, T HESE PROCEEDINGS CANNOT BE PROCEEDED WITH AND THE RIGHTS AND LIABILI TIES OF THE PARTIES ARE SUBJECT TO THE OUTCOME OF THE CIRP. WITH THIS VIEW OF THE MATTER, WE DO NOT FIND ANY REASON TO CONTINUE THIS ADJUDICATION P ROCESS, AND CLOSE THE PROCEEDINGS SUBJECT TO THE RESULT OF CIRP. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 20 TH DAY OF SEPTEMBER, 2021. SD/- SD/- ( O.P. KANT) (K. NARSIMHA CHAR Y) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20/09/2021