M/s. MSP Metallics Limited. , Kolkata V. ACIT,Cir-1(1),Kolkata. , Kolkata

ITA 699/KOL/2023

AI Insights

M/s MSP Metallics Limited, the appellant, decided to withdraw their appeal against the order of the National Faceless Appeal Centre (CIT(A)), which was passed under section 250 of the Income Tax Act. The withdrawal was influenced by the Supreme Court's decision in the case of Ghanashyam Mishra and Sons Private Limited, which established that claims not included in the resolution plan during insolvency proceedings are extinguished. This legal development, coupled with the recent amendment to the Income Tax Act via the Finance Act 2022, which introduced section 156A, prompted the appellant to withdraw the appeal, deeming the tax demand infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128272 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-09-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 11-07-2023
• Other Referred Cases: Ghanashyam Mishra and Sons Private Limited (Civil Appeal No. 8129 of 2019)
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code, Finance Act 2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘बी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी मनीष बोरड, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member I.T.A No.699/Kol/2023 Assessment year: 2011-12 M/s MSP Metallics Limited...............................................................Appellant 1, Garstin Place, Orbit House, 3 rd Floor, Room No.3B, Kolkata - 700001. [PAN: AACCA5907D] vs. ACIT, Circle-1(1), Kolkata...........................................................Respondent Appearances by: Shri Amit Chowdhury, ACA, appeared on behalf of the appellant. Shri P. P. Barman, Addl. CIT, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : September 13, 2023 Date of pronouncing the order : September 26, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 26.05.2023 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee has moved an application, wherein, it has been stated as under: “In this regard, most respectfully, it is submitted, that the appellant company taken over by the new management through insolvency proceedings (CIRP) under section 31 of the IBC vide NCLT order dated 11.07.2022. Copy of the NCLT order enclosed. I.T.A No.699/Kol/2023 Assessment year: 2011-12 M/s MSP Metallics Limited 2 The appellant do not want to pursue the above appeal anymore in view of the recent Judgment of Ghanashyam Mishra and Sons Private Limited (Civil Appeal No. 8129 of 2019 decided on 13.04.2021) the Hon'ble Apex Court laid down the law that all claims not part of the resolution plan, shall stand extinguished and no person will be entitled to initiate continue any proceedings in respect to a claim, which is not part of the resolution plan. In view of Apex Court decision, Finance Act 2022, has inserted section - 156A which authorizes the AO to modify the demand order issued under Section 156 in conformity with the order of the adjudicating authority, reducing the demand of tax, interest, penalty, fine, or any other sum. In view of the Apex Court decision and insertion of section 156A of the Income Tax Act, demand has become infructuous. As such assessee don’t want to pursue the above appeal before the Hon’ble ITAT and like to withdraw the above appeal.” 3. The ld. counsel for the assessee, therefore, has submitted that he may be allowed to withdraw the present appeal. The ld. counsel however has been informed that the withdrawal of this appeal will not in any manner be treated as immunity from raising of the tax demand etc. by the department, subject to the exceptions, defence or legal remedies otherwise available to the assessee. 4. Subject to the above observation, the appeal of the assessee is hereby dismissed as withdrawn. Kolkata, the 26 th September, 2023. Sd/- Sd/- [डॉÈटर मनीष बोरड /Dr. Manish Borad] [संजय गग[ /Sanjay Garg] लेखा सदèय /Accountant Member ÛयाǓयक सदèय /Judicial Member Dated: 26.09.2023. RS I.T.A No.699/Kol/2023 Assessment year: 2011-12 M/s MSP Metallics Limited 3 Copy of the order forwarded to: 1. M/s MSP Metallics Limited 2. ACIT, Circle-1(1), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches