DCIT, Central Circle - 3(3), , Kolkata V. M/s. Shree Ram Saw Mills Pvt. Ltd., , Kolkata

ITSSA 110/KOL/2018

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3977 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MD. GHAYAS UDDIN
• Keywords: Search and seizure
• Section: 68; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A”BENCH KOLKATA BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT ANDSHRIGIRISH AGRAWAL, ACCOUNTANTMEMBER IT(SS)A No.107/Kol/2018 Assessment Year: 2008-09 & IT(SS)A Nos.108 to 111/Kol/2018 Assessment Years: 2010-11 to 2013-14 Deputy Commissioner of Income Tax, Central Circle-3(3), Kolkata. Vs. M/s. Shree Ram Saw Mills Pvt. Ltd. (PAN: AAGCS8331M) (Appellant) (Respondent) & IT(SS)A Nos.114 to 115 /Kol/2018 Assessment Years: 2007-08 & 2009-10 & IT(SS)A Nos.116 to 117 /Kol/2018 Assessment Years: 2010-11& 2013-14 M/s. Shree Ram Saw Mills Pvt. Ltd. Vs. Deputy Commissioner of Income Tax, Central Circle- 3(3), Kolkata. (Appellant) (Respondent) Present for: Department by : Md. Ghayas Uddin, CIT, DR Assessee by : N o n e Date of Hearing : 09.05.2022 Date of Pronouncement : 10.06.2022 O R D E R PER BENCH: All these cross appeals by the revenue and the assessee are directed against the separate orders of ld. CIT(A)-21, Kolkata dated 27.07.2018 for A.Ys. 2007-08 to 2013-14 passed against the assessment order u/s. 153A/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) by DCIT, Central Circle-3(3), Kolkata, dated 13.12.2017 and 04.03.2015 for AY 2013-14. IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 2 2. None appeared on behalf of the assessee. Md. Ghyas Uddin, CIT, DR appeared for the revenue. 3. From the order sheet in the hearing held on 04.01.2022, we note that Shri Miraj D. Shah appeared on behalf of the assessee who submitted that the proceedings have been initiated against the company under Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as the “I&BC, 2016”). He also submitted that the Hon’ble National Company Law Tribunal (hereinafter referred to as the “NCLT”) vide order dated 16.03.2020 has ordered for moratorium u/s. 14 of the I&BC, 2016 by virtue of which institution of suits or continuation of pending suits or proceedings against the corporate debtor in any court of law, tribunal, arbitration panel etc. have been prohibited. It was also submitted that as per the said order, Mr. Kanchan Dutta, IP Registration No. IBBI/IPA-001/IPP002/2017-2018/10391, Kolkata has been appointed as interim resolution professional for ascertaining the particulars of creditors and convening a Committee of Creditors involving a resolution plan. It was directed to issue a notice on behalf of the assessee to the aforesaid interim resolution professional and the matter was adjourned. A copy of the order sheet is reproduced hereunder for ease of reference. IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 3 4. Considering the facts on record in the above stated order sheet and with the aid of ld. CIT, DR, we are inclined to take up the matter in this bunch of nine appeals and decide it on the basis of material placed on record. 5. Brief facts of the case are that the assessee is a reseller of timber and wood products. A search and seizure operation u/s. 132 of the Act was conducted at its business premises and several other offices and factory premises of the group companies on 21.11.2013. In respect of AY 2008-09, the Ld. AO enquired about the unsecured loans taken in the sum of Rs.1,50,32,089/- which were ultimately added to the total income of the assessee. Similarly, in other years also the issues involved relate to the addition made in respect of either unsecured loan or share application money treated as undisclosed income u/s. 68 of the Act. 6. From the appeal folder, we find that there are paper books which are placed on record by the erstwhile authorized representative of the assessee containing orders passed by Hon’ble NCLT in the assessee’s own case in the proceeding under the I&BC, 2016. From the order of Hon’ble NCLT in Petition No. CP(IB) No. 978/KB/2019 dated 16.03.2020 wherein an application for initiation of corporate insolvency resolution process (CIRP) u/s.7 of the I&BC, 2016 read with Rule 4 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules 2016 was moved and an order was passed admitting the same. A moratorium was declared according to which the institution of suits or continuation of pending suits or proceedings against the corporate debtor (the assessee) including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority is prohibited. The extract of the order is reproduced hereunder: IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 4 IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 5 IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 6 7. Further, we are guided by the decisions of Coordinate bench of ITAT, Ahmedabad in the case of Real Steps Ltd. Vs. PCIT in ITA No. 117/Ahd/2021 dated 27.07.2021 which has dealt with identical issue before us. The said decision is reproduced hereunder for ease of reference. IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 7 IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 8 8. In the light of the above order by Hon’ble NCLT in the assessee’s own case for its CIRP as per Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules 2016, no proceedings can continue against the corporate debtor i.e. the assessee. In view of this and drawing further force from the order of coordinate bench of ITAT Ahmedabad in the case of Real Steps Ltd. Vs. PCIT (supra), all these nine appeals before this Tribunal filed by the assessee/Department are dismissed as infructuous. However, ld. AO is at liberty to make an IT(SS)A Nos.107-111/Kol/2018 & IT(SS)A Nos. 114-117/Kol/2018 Shree Ram Saw Mills Pvt. Ltd. A.Y. 2007-08 to 2013-14 9 application for reinstitution of these appeals after the resolution process ends in IBC 2016. Accordingly, the appeals of the assessee and the Department (totaling nine in numbers) are dismissed as infructuous. 9. In the result, all the appeals of assessee/Department are dismissed. Order pronounced in the open court on 10.06.2022. Sd/- Sd/- (RAJPAL YADAV) (GIRISH AGRAWAL) VICE PRESIDENT ACCOUNTANT MEMBER Kolkata, Dated: 10.06.2022 JD, Sr. P.S. Copy to: 1. The Appellant: DCIT Central Circle-3(3), Kolkata. 2. The Respondent: M/s. Shree Ram Saw Mills Pvt. Ltd., 67/10, Strand Road, Kolkata-700 007. 3. The CIT, Kolkata 4. The CIT (A) - 21, Kolkata 5. The DR, ITAT, Kolkata Bench, Kolkata //True Copy// [ By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata