United Artlogistics Private Limited, New Delhi V. ITO WARD - 27(1), New Delhi

ITA 895/DEL/2020

AI Insights

The case involves United Artlogistics Pvt. Ltd., which appealed against the order of the Income Tax Officer, Ward-27(1), New Delhi, concerning a disallowance made under section 40(a)(ia) of the Income Tax Act, 1961. The appeal was heard by the Income Tax Appellate Tribunal, Delhi Bench. During the proceedings, it was revealed that the company was under a moratorium as per the Insolvency and Bankruptcy Code, 2016, following an order from the National Company Law Tribunal (NCLT). This moratorium prevented any legal proceedings against the company, including the tax appeal. Consequently, the tribunal dismissed the appeal as not maintainable under the current legal framework, emphasizing the impact of the moratorium on the proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130604 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 31-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 23-02-2020
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 10; 143(3); 40(a)(ia)

Judgement Text

Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’: NEW DELHI BEFORE, SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.895/Del/2020 (ASSESSMENT YEAR 2014-15) United Artlogistics Pvt. Limited B-601, Navin Apartments Plot No.13, Sec.5 Dwarka, New Delhi-110 075 PAN-AABCU 0337L Vs. Income Tax Officer Ward-27(1) New Delhi (Appellant) (Respondent) Appellant by Mr. Abhishek Jain, CA Respondent by Mr. Sunil Kumar Yadav, SR-DR Date of Hearing 01/06/2023 Date of Pronouncement 29/08/2023 ORDER PER M. BALAGANESH AM: This appeal of the Assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals)-9 New Delhi, [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.9/10786/2016- 17 dated 10/10/2019 against the order passed by Income Tax ITA No.895/Del/2020 United Artlogistics Pvt. Ltd. vs. ITO Page 2 of 3 Officer, Ward-27(1), New Delhi (hereinafter referred to as the ‘Ld. AO’) u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 29/12/2019. 2. The only issue to be decided in this appeal is with regard to the disallowance made u/s 40(a)(ia) of the Act. 3. We have heard the rival submissions and perused the materials available on record. We find that the ld. AR at the outset filed a letter dated 01.06.2023 stating that proceedings u/s 10 of Insolvency and Bankruptcy Code , 2016 (IBC) has been initiated on the assessee company before Hon’ble National Company Law Tribunal (NCLT), consequent to which NCLT had granted morotarium in terms of section 14 of the IBC vide order dated 30.01.2023. We have gone through the same and find that as per section 14 of IBC, 2016, no proceedings against the corporate debtor (i.e. the assessee herein) could be pending before any court of law, tribunal, arbitration panel or other authority. Pursuant to the morotarium granted by NCLT, the Interim Resolution Professional, if any, had not impleaded before us in the present appellate proceedings to represent on behalf of the assessee company. Hence we hold that the appeal of the assessee is not ITA No.895/Del/2020 United Artlogistics Pvt. Ltd. vs. ITO Page 3 of 3 maintainable in the present format. Accordingly, the appeal of the assessee is hereby dismissed as not maintainable with liberty given to Interim Resolution Professional to implead himself on behalf of the assessee company, if he so desires. 4. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 29 th August, 2023. Sd/- Sd/- (KUL BHARAT) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29/08/2023 Pk/sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI