ITO,Ward 14(3), Hyderabad V. M/s ICSA (India) Ltd., Hyderabad

ITA 744/Hyd/2014

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8620 (ITAT-HYDERABAD)
• Duration Of Justice: 8 year(s) 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Appeal Filed On: 23-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 13

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA Nos. निर्धारण वर्ा / A.Y. अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent 743/Hyd/2014 2011-12 The Income Tax Officer, Ward 14(3), Hyderabad. M/s. ICSA(India) Limited, No.12, Software Units Layout, Cyberabad, Hyderabad. PAN – AABCM5465F 744/Hyd/2014 2012-13 निर्धाररती द्वधरध/Assessee by: Shri P. Murali Mohan Rao, CA रधजस्‍व द्वधरध/Revenue by: Shri Solge Jost Kottaram, CIT-DR. सुिवधई की तधरीख/Date of hearing: 08/08/2022 घोर्णध की तधरीख/Pronouncement on: 10 /08/2022 आदेश / ORDER PER RAMA KANTA PANDA, AM : Aggrieved by the order(s) dated 27/01/2014 passed by the learned Commissioner of Income Tax (Appeals), Vijayawada (“Ld. CIT(A)”), in the case of M/s.ICSA (India) Limited, (“the assessee”) for the assessment years 2011-12 & 2012-13, Revenue preferred these appeals. For the sake of convenience, we dispose-of these appeals by this common order. ITA Nos. 743 & 744/Hyd/2014 Page 2 of 5 2. At the outset, it is represented by both the sides that the Corporate Insolvency Resolution Proceedings (CIRP) are pending against the assessee and as of now, Hon'ble National Company Law Appellate Tribunal (NCLAT) is seized with the jurisdiction. 3. We have considered the issue in the light of the provisions of Insolvency and Bankruptcy Code, 2016 (“the Code”) and the decision of the Hon'ble Apex Court in the case of Ghanashyam Mishra And Sons vs Edelweiss Asset Reconstruction (2021) 126 taxmann.com 132 (SC). Under section 13 of the Code, the adjudicating authority after admission of the application under section 7 or 9 or 10 of the Code shall declare a moratorium which shall include the prohibition of the institution of suits or continuation of pending suits or proceedings against the corporate debtor in any court of law or tribunal. In Ghanashyam Mishra And Sons (supra), it was held that, (i) That once a resolution plan is duly approved by the Adjudicating Authority under sub section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; (ii) 2019 amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I&B Code has come into effect; and (iii) Consequently all the dues including the statutory dues owed to the Central ITA Nos. 743 & 744/Hyd/2014 Page 3 of 5 Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under Section 31 could be continued. 4. A reading of the provisions under section 13 and 14 of the Code along with the decision in Ghanashyam Mishra And Sons (supra), clearly shows that once the proceedings have commenced by institution of application under section 7 or 9 or 10 of the Code, the continuance of the pending proceedings is prohibited and when once they reach the logical conclusion with due approval of the resolution plan by the Adjudicating Authority under sub section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. At any rate, for the time being, these appeals cannot be proceeded with during the continuance of the proceedings under the Code. However, depending upon the result of such proceedings before the adjudicating authority in respect of the corporate debtor, appropriate steps if any, may be taken by the appellant/respondent. We, therefore, granting leave to the appellants/respondents in these appeals to seek the restoration of the appeals, if necessitated by the orders in the Corporate Insolvency Resolution Proceedings, dismiss the appeals in limine. We derive support for the above proposition from the decision of the Mumbai Bench of the Tribunal in the case of Mahavir Roads & Infrastructure Pvt. Ltd., Vs. DCIT in ITA Nos. 646 to 651/Mum/2019 (AYs.2008-09 to 2013-14), dt.08/06/2022. ITA Nos. 743 & 744/Hyd/2014 Page 4 of 5 5. In the result, both the appeals of Revenue are dismissed in limine. Order pronounced in the open court on this the 10 th day of August, 2022 Sd/- Sd/- (K. NARASIMHA CHARY) (RAMA KANTA PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 10/08/2022 TYNM/SR.PS ITA Nos. 743 & 744/Hyd/2014 Page 5 of 5 Copy forwarded to : S.No Addresses 1. M/s. ICSA (India) Ltd., No.12, Software Units, Layout, Cyberabad, Hyderabad – 500 081. 2 The Income Tax Officer, Ward – 14(3), Hyderabad. 3 CIT (Appeals) – Vijayawada. 4 CIT (TDS), Hyderabad. 5 DR, ITAT, Hyderabad Benches 6 Guard File. By Order