ITO-13(3)(3), MUMBAI V. M/S. TOPSGROUP ELECTRONIC SYSTEMS LTD., MUMBAI

ITA 732/MUM/2019

AI Insights

The case involves an appeal by the Income Tax Officer against Topsgroup Electronic Systems Ltd., concerning an order passed by the Commissioner of Income-tax (Appeals)-58, Mumbai. The respondent company was admitted into the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the IBC 2016, following an order by the NCLT, Mumbai. Due to the initiation of CIRP, a moratorium was imposed, preventing any legal proceedings against the company. The Income Tax Appellate Tribunal acknowledged the moratorium and dismissed the appeal, allowing for future proceedings post-moratorium.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299668 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-1969
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 26-12-2022
• Assessment Year: misc
• Appeal Filed On: 07-02-2019
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIHAR RANJAN PANDEY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI RAHUL CHAUDHARY, JM ITA No.732/Mum/2019 (Assessment Year: 2013-14) Incom e T ax Of f icer W ard 13(3)(3 ) Room No.216-B , 2 nd F loor, Aaykar Bha van M.K. Road, Mum bai-400 020 Vs. M/s Topsgroup Electronic System Ltd. 5,Royal Palms, Golf & Country Club, Survey No.169, Aarey Mill Road, Goregaon (East) Mumbai-400 065 (Appellant) (Respondent) PAN No. ALAPK2218D Assessee by : None Revenue by : Shri Nihar Ranjan Pandey, CIT DR Date of hearing: 27.12.2022 Date of pronouncement : 27.12.2022 O R D E R PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by the learned Income Tax Officer- 13(3)(3), Mumbai (the learned Assessing Officer) against Topsgroup Electronic Systems Ltd. against the order passed by Commissioner of Income-tax (Appeals)-58, Mumbai [the learned CIT (A)] dated 30 th November, 2018. 02. At the time of hearing, it has come to notice that the respondent assessee has been admitted as corporate debtor in corporate Insolvency Resolution Process under Section 9 of the IBC 2016 of the order dated 28 th January, Page | 2 ITA No.732/Mum/2019 M/s Topsgroup Electronic System Ltd..; A.Y. 2013-14 2022 of the NCLT, Mumbai Bench –IV, in CPIB no.1429- MB-IB-2020 and Insolvency Resolution Professional (IRP) has been appointed. Mr. Sanjay Srivastava, an IRP is appointed as Insolvency Resolution Professional by the above order. In view of the above facts and in terms of provision of Section 14 of the IBC 2016, the Revenue cannot continue any proceedings against the assessee. 03. In view of this, the appeal of the learned Assessing Officer is dismissed. However, we give liberty to the learned Assessing Officer to institute the same proceedings as soon as the moratorium period is over. 04. Accordingly, the appeal of the learned Assessing Officer is dismissed. Order pronounced in the open court on 27.12.2022. Sd/- Sd/- (RAHUL CHAUDHARY) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 27.12.2022 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai