ACIT, Central Circle-28, New Delhi V. Sunar Jewels Pvt. Ltd. (Formerly known as M/s Goel Impex Pvt. Ltd.), New Delhi

ITA 9628/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1108 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 05-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 17-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 143(3); 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 9628/Del/2019 (Assessment Year : 2011-12) ACIT Central Circle – 28 New Delhi PAN No. AADCG 4614 Q Vs. Sunar Jewels Pvt. Ltd. (Formerly known as M/s. Goel Impex Pvt. Ltd.), 2606/4, Karol Bagh, New Delhi-110 092 (APPELLANT) (RESPONDENT) Assessee by Shri Hiren Mehta, C.A. Revenue by Shri Abhishek Kumar, Sr. D.R. Date of hearing: 06.10.2022 Date of Pronouncement: 12.10.2022 ORDER PER ANIL CHATURVEDI, AM: This appeal filed by the Revenue is directed against the order dated 29.10.2019 passed by the Commissioner of Income Tax (Appeals)-29, New Delhi relating to Assessment Year 2011-12. 2. Brief facts of the case as culled out from the material on record are as under :- 3. Assessee is a company stated to be engaged in the business of dealing in Bullion and Gold Jewellery. Assessee filed its return of income for A.Y. 2011-12 on 11.01.2012 declaring income of Rs.38,59,941/-. The case of the assessee was initially processed 2 u/s 143(1) of the Act on 27.01.2012. Thereafter, the assessment was re-opened by issuing notice u/s 148 of the Act. Consequently, assessment was framed u/s 147 r.w.s 143(3) of the Act vide order dated 26.11.2018 and the total income was determined at Rs.8,05,24,170/-. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 29.10.2019 in Appeal No.107/2018-19/CIT(A)-29/A.Y. 2011-12 granted partial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal and has raised the following grounds: “1. On the facts and in the circumstances of the case, the Ld CIT(A) has erred in law and on facts in deleting the addition of Rs.7,66,64,228/- made by the AO on account of unexplained transaction without considering the fact that creditworthiness of alleged creditors were not established. 2. Whether the Ld CIT(A) was right in deleting the additions of Rs.7,66,64,228/- without appreciating the facts that a search was conducted on Shree Raj Mahal Group of Jewelers on 15.10.2013 the stock was found short in many of the group companies during search operation. M/s. Sunar Jewelers (formerly known as M/s. Goel Impex Pvt. Ltd.) belongs to the group of companies. During the search proceedings the transaction with M/s. Radha Jewellery were deeply examined and during the enquiry M/s. Radha jewellery House was found unable to furnish any explanation/jurisdiction for passing jewellery house was found unable to furnish any explanation/jurisdiction for passing entries with the associated group companies without having any real business activities. 3. That the grounds of appeal are without prejudice to each other. 4. That the appellant craves to leave, to add, amend, alter or forgo any ground(s) of appeal either before or at the time of hearing of the appeal.” 3 5. On the date of hearing, Learned AR submitted that Hon’ble National Company Law Tribunal (‘NCLT’) vide order dated 25.04.2019 [C.P. No. IB-1444(PB)/2018] in the matter of Reliance Commercial Finance Ltd. vs. Sunar Jewels Pvt. Ltd. had admitted the petition and Mr. Manoj Garg was appointed as Interim Resolution Professional (IRP). He submitted that the Hon’ble Company Law Tribunal has declared moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’). He submitted that by virtue of the declaration of moratorium, all liabilities of assessee pertaining to any governmental dues related to a period prior to the approval of the Resolution Plan stand extinguished other than those expressly provided for in the Resolution Plan and the NCLT order. He further submitted that by virtue of the NCLT order, all pending proceedings in relation to or in connection with assessee will be deemed withdrawn or terminated and, thereby all the liabilities or obligations in relation thereto will be deemed to have been written off in full and permanently extinguished. He also placed on record the copy of the NCLT order. He, therefore, submitted that in view of the aforesaid facts, necessary orders be passed in the case. 6. Learned DR did not controvert the submissions made by Learned AR. 7. We have heard the rival submissions and perused the material available on record. Before us, Learned AR has submitted that Hon’ble National Company Law Tribunal vide 4 order dated 25.04.2019 has admitted the petition and declared moratorium in terms of Section 14 of the Insolvency and Bankruptcy Code (‘IBC’), 2016. 8. Hon’ble Apex Court in the case of PCIT vs. Monnet Ispat & Energy Ltd. (2019) 107 Taxmann.com 481 (SC) has held that IBC Code will override anything inconsistent in any other enactment including Income Tax Act. When NCLT has declared moratorium u/s 14 of IBC Code in the case of assessee, then there is a complete bar to initiate and continue proceedings against the assessee before any authority. Therefore, in view of the moratorium granted by NCLT, no proceedings against the assessee can continue. In view of the aforesaid facts, the appeal of Revenue deserves to be dismissed. However, liberty is granted to the Revenue to seek revival of the appeal after the lifting of the moratorium and in accordance with law. 9. In view of the aforesaid facts, grounds of appeal filed by Revenue are dismissed. 10. In the result, appeal of Revenue is dismissed. Order pronounced in the open court on 12.10.2022 Sd/- Sd/- (ANUBHAV SHARMA) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Date:- 12.10.2022 5 PY* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI