M/S. BHUSHAN STEEL LTD.,NEW DELHI V. ACIT, NEW DELHI

ITA 1336/DEL/2016

AI Insights

The case involves cross-appeals by Bhushan Steel Ltd. and the Revenue against the order of the Learned Commissioner of Income-Tax (Appeals)-44, New Delhi, which arose from the assessment orders for the years 2009-10 and 2010-11. The primary contention was whether the tax liabilities arising from the income tax proceedings could be recovered post the approval of a resolution plan by the NCLT. The assessee argued that the tax demands were rendered infructuous due to the resolution plan, citing specific paragraphs from the plan and a Supreme Court judgment supporting their claim. The Revenue, however, contended that the NCLT's order did not address the tax demands specifically. The tribunal decided to restore the appeals to the Assessing Officer for necessary modifications in the tax demand, referencing the Supreme Court's decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26847 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2009-2010
• Other Referred Cases: Ghanshyam Mishra & Sons (P) Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd. [2021] 126 taxmann.com 132 (SC)
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARAM VEER SING H
• Assessee Lawyers: AKASH SHUKLA
• Keywords: Competent authority
• Section: 143(3)

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I”: NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 1336/DEL/2016 Assessment Year: 2009-10 ITA No. 1337/DEL/2016 Assessment Year: 2010-11 Bhushan Steel Ltd., Bhushan Centre, Ground Floor, Hyatt Regency Complex, Bhikaji Cama Place, New Delhi PIN 110066 PAN No. AAACB1247M Vs. ACIT. Central Circle-13, New Delhi (Appellant) (Respondent) ITA No. 1469/DEL/2016 Assessment Year: 2010-11 ITA No. 1470/DEL/2016 Assessment Year: 2009-10 ACIT. Central Circle-3, New Delhi Vs. Bhushan Steel Ltd., Bhushan Centre, Ground Floor, Hyatt Regency Complex, Bhikaji Cama Place, New Delhi PIN 110066 PAN No. AAACB1247M (Appellant) (Respondent) Assessee by: Shri Akash Shukla, Adv. Department by: Shri Dharam Veer Singh, CIT (DR) Date of Hearing: 01.04.2025 Date of pronouncement: 01.04.2025 ITA Nos.1336 1337 1469 & 1470/Del/2016 2 O R D E R PER BENCH: The cross-appeals filed by appellant/assessee and Revenue are against order dated 29.01.2016 of the Learned Commissioner of Income-Tax(Appeals)- 44, New Delhi (hereinafter referred to as “Ld. CIT(A)”) arising out of assessment order dated 01.05.2013 by the Deputy Commissioner of Income Tax (hereinafter referred to as “Ld.AO”) under Section 143(3) of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”) for assessment years 2009-10 and 2010-11. 2. At the time of hearing, the learned counsel for the appellant/assessee adverted to the order dated 08.01.2025 of Co-ordinate Bench in the case of the assessee in ITA No.1493/Del/2018 for the assessment year 2013-14 with similar order dated 14.02.2024 in ITA No.1602/Del/2018 concerning to assessment year 2013-14 to submit that the tax liability arising from the income tax proceedings cannot be recovered in view of the resolution plan approved by the Competent Authority i.e. National Company Law Tribunal vide order dated 15- 05-2018. The learned counsel for the assessee referred to paras 8.6.1, 8.2.1 and 8.2(ii) and 8.6.10 of the approved resolution dated 03.02.2018 and pointed out that the statutory liability including the income tax demands arising to the ITA Nos.1336 1337 1469 & 1470/Del/2016 3 assessee prior to the date of resolution plan approved by the competent authority stands diminished and is no longer recoverable. 3. The learned counsel relied on to the judgment in the case of Ghanshyam Mishra & Sons (P) Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd. [2021] 126 taxmann.com 132 (SC) and submitted that in view of the ratio of the aforesaid judgment, the tax recoverable in relation to income tax proceedings is not possible any more. Therefore, the grievances of the assessee as well as of the Revenue arising from the assessment order have been rendered as infructuous. 4. Learned CIT DR for the Revenue, relied on orders of the Ld. AO and Ld. CIT(A) and submitted that the NCLT’s order dated 15.05.2018 and approved resolution plan show that the competent Authority has not expressed any opinion on tax demands. 5. In the view of facts and circumstances narrated on behalf of the appellant/assessee, we consider it expedient to restore these appeals to the file of the Assessing Officer to take necessary steps as per section 156 A of the Act for modification of demand and also keeping in mind the ratio of the judgment in the case of Ghanshyam Mishra & Sons (P) Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd. [2021] 126 taxmann.com 132 (SC). ITA Nos.1336 1337 1469 & 1470/Del/2016 4 6. In the result, the appeals of the assessee are allowed whereas the appeals of the Revenue are dismissed as infructuous in limine. Order pronounced in the open court on 01/04/2025. Sd/- Sd/- (PRADIP KUMAR KEDIA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 02 /04/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "