M/S AEZ INFRATECH P. LTD.,NEW DELHI V. ACIT, NEW DELHI

ITA 6336/DEL/2015

AI Insights

The case involves multiple appeals by the Revenue and the Assessee, AEZ Infratech Pvt. Ltd., against the orders of the Ld. CIT(A)-27, New Delhi, for various assessment years. The appeals were rendered infructuous due to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Assessee under the Insolvency and Bankruptcy Code, 2016. The National Company Law Appellate Tribunal (NCLAT) had issued an order under the IBC, which was acknowledged during the proceedings. The primary legal issue was the applicability and overriding effect of Section 238 of the IBC over the Income Tax Act, 1961, as supported by the Supreme Court's decision in PCIT vs. Monnet Ispat and Energy Ltd.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314323 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Other Referred Cases: PCIT vs. Monnet Ispat and Energy Ltd. SLP (C) No. 6483 of 2018
• Laws Referred To: Insolvency and Bankruptcy Code, 2016, Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL SINGH
• Assessee Lawyers: RAJESHWAR PAINULY

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA NO. 6308/DEL/2015 (AY 2006-07) ITA NO. 6310/DEL/2015 (AY 2008-09) ITA NO. 6312/DEL/2015 (AY 2011-12) DCIT, CENTRAL CIRCLE-18, ROOM NO. 102, ARA CENTRE, E-2, JHANDEWALAN EXTN.N, NEW DELHI – 55 Vs. AEZ INFRATECH PVT. LTD., 301, BAKSHI HOUSE, 40-41, NEHRU PLACE, NEW DELHI – 19 (PAN: AACCK2036M) (Appellant) (Respondent) AND ITA NO. 6336/DEL/2015 (AY 2006-07) ITA NO. 6340/DEL/2015 (AY 2011-12) AEZ INFRATECH PVT. LTD., 301, BAKSHI HOUSE, 40-41, NEHRU PLACE, NEW DELHI – 19 (PAN: AACCK2036M) Vs. DCIT, CENTRAL CIRCLE-18, ROOM NO. 102, ARA CENTRE, E- 2, JHANDEWALAN EXTN.N, NEW DELHI – 55 (Appellant) (Respondent) ORDER PER SHAMIM YAHYA: AM The ITA Nos. 6308/DEL/2015, 6310/DEL/2015 & 6312/DEL/2015 have been filed by the Revenue against the respective orders of the Ld. CIT(A)-27, New Delhi relevant to assessment years 2006-07, 2008-09 & 2011- Assessee by Shri Rajeshwar Painuly, CA Department by Shri Surender Pal Singh, CIT(DR) 2 12 respectively and ITA Nos. 6336/DEL/2015 & 6340/DEL/2015 have been filed by the assessee against the respective of the Ld. CIT(A)-27, New Delhi relevant to assessment years 2006-07 & 2011-12. 2. At the time of hearing, Ld. AR has submitted that Corporate Insolvency Resolution Process (CIPR) has been initiated against the assessee, under the Insolvency and Bankruptcy Code, 2016 (IBC) issued by the Hon’ble National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi in Civil Appeal (AT) (Insolvency) No. 849 of 2023 & IA No. 2894, 2895 of 2023 vide order dated 17th December, 2024, under the IBC (arising out of the order dated 22.4.2023 passed by the ‘Adjudicating Authority’ (National Company Law Tribunal-III, New Delhi) in CP (IB) No. 3083/ND/2019) titled Mr. Rakesh Kumar Jain vs. M/s ADTV Communications Private Limited (Formerly Known as M/s AEZ Infratech Private Limited). 3. Ld. DR did not controvert the aforesaid proposition. 4. We have heard both the parties and perused the records. We find that provisions contained under section 238 of “the Code” are having an overriding effect over all other Central and State statutes including Income Tax Act as held by Hon’ble Supreme Court in case of PCIT vs. Monnet Ispat and Energy Ltd. SLP (C) No. 6483 of 2018 Order dated 10.8.2018 by returning following findings:- “Given section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income Tax Act.” 5. In this view of the matter, Section 238 of the Code will have overriding effect over all other Central and State statutes including the Income Tax Act and all the claims including claim of the Income Tax Department under the Income Tax Act, 1961 shall be entertained by the Official Liquidator u/s. 53(1) of the 3 Code. In the background of the aforesaid factual matrix, the captioned Appeals filed by the Revenue as well as Assessee have become infructuous and dismissed as such. However, the Revenue as well as Assessee both are at liberty to approach the Tribunal for reinstitution of their respective appeals and the Tribunal shall consider such applications appropriately, as per law. 6. In the result, for statistical purposes, all the appeals filed by the Revenue as well as Assessee stand dismissed in the aforesaid manner. Order pronounced 07/05/2025. SD/- (SUDHIR PAREEK) SD/- (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER “SRBHATNAGAR” Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "