DCIT, New Delhi V. M/s. Monnet Ispat & Energy Ltd., New Delhi

MA 337/DEL/2017

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2877 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 3 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 08-09-2022
• Assessment Year: 2005-2006
• Appeal Filed On: 25-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Liquidation

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE DR. B.R.R. KUMAR, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER MA No. 337/Del/2017 (In ITA No.5066/Del/2014) (Assessment Year: 2005-06) The Dy. CIT, Central Circle-20, New Delhi Vs. M/s. Monnet Ispat & Energy Ltd, 11, Masjid Moth, Greater Kailash-II, New Delhi (Appellant) (Respondent) PAN: AAACM0501D Assessee by : Shri V. K. Jain, CA Revenue by: Shri Sanjay Kumar, Sr. DR Date of Hearing 09/09/2022 Date of pronouncement 09/09/2022 O R D E R PER ANUBHAV SHARMA, J. M.: 1. The revenue has preferred this miscellaneous application arising out of ITA No. 5066 to 5072/Del/2014 dated 30.09.2016 in the case of DCIT, Central Circle-20, New Delhi Vs. M/s. Monnet Ispat & Energy Ltd, New Delhi in Assessment Year 2011-12. The above appeal was disposed off by the combined order dated. 30.09.2016 in ITA no. 5066 to 5072/Del/2014 for the AY 2005-06 to 2011-12. 2. Heard and perused the record. 3. On behalf of the revenue it was submitted that in the impugned order dated 30.09.2016 one ground was left un-adjudicated. It was submitted that to bring finality to the issue the grounds should be at least adjudicated. Page | 2 4. On the other hand Ld. Counsel for the Assessee submitted that as corporate Resolution Plan stands allowed by the NCLT thereafter no substance is left in the present miscellaneous application. 5. It can be appreciated that vide order dated 16.08.2021 in regard to Assessee’s own case ITA No. 173/Del/2018 for Assessment Year 2013-14, the revenue’s appeal was dismissed as all the dues of the Income Tax Department for were found mentioned in the NCLt order. Similar has been the case for Assessment Years 2005-06, 2006-07, 2007-08 as reflected by disposal of ITAs No. 6961, 6962, 6963/Del/2017 and for Assessment Year 2015-16 in ITA No. 4027/Del/2019. In this context it will be relevant to reproduce para 5 of ITA No. 173/Del/2018 for Assessment Year 2013-14, which has been followed for other Assessment Years:- “5. We have gone through the record in the light of submissions made on either side. Dues to the Income-tax Department are reflected in list - B appended to the order dated 24.07.2018 passed by the NCLT. By such order, NCLT observed that there is a huge difference in the total amount of admitted secured financial creditors which is to the tune of Rs.1,14,78,09,50,325/- and the liquidation value of the company to the tune of Rs.23,56,35,25,186/- and therefore, by application of the waterfall mechanism mentioned in section 53 of the Code, the liquidation value due to unsecured financial creditors, operational creditors and other creditors of the assessee becomes nil. It is clear that in terms of the resolution plan as approved by the NCLT, all claims or demands or liabilities or obligations owed or payable to or assessed by or assessable by the Central Government/ State Government in relation to any period to the acquisition, will be written off in full and will be deemed to be permanently extinguished. This position of law is clear in view of the decision of Hon'ble Supreme Court in the case of Ghanashyam Mishara and Sons vs. Edleweiss Assets Reconstruction Company Ltd. (Civil appeal No.8129/2019 - Order dated 13/04/2021).” 6. In the light of aforesaid there is no justification to allow the Miscellaneous Application as the same will result into listing the matter for re-hearing and which will be a futile exercise, as the claim, Page | 3 if any and what so ever, has been taken into account in the final order of the NCLT. So, the present application as infact become infructuous. 7. Consequently, the miscellaneous application is dismissed. Order pronounced in the open court on 09/09/2022. -Sd/- -Sd/- (DR. B.R.R. KUMAR) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09/09/2022 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi