MARSONS LTD.,KOLKATA V. PCIT, , KOLKATA

ITA 725/KOL/2024

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Marsons Ltd. appealed against the revisionary order passed by the PCIT, Kolkata, under section 263 of the Income Tax Act, which was challenged on the grounds that the NCLT had already passed a final order under the Insolvency and Bankruptcy Code, 2016, extinguishing all claims against the company, including tax liabilities. The Tribunal referenced a similar case, M/s Kohinoor Steel Pvt. Ltd. vs. ITO, where it was held that no proceedings could continue against a corporate debtor post-NCLT order. Consequently, the Tribunal set aside the PCIT's order, allowing Marsons Ltd.'s appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472675 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 08-04-2024
• Other Referred Cases: M/s Kohinoor Steel Pvt. Ltd. vs. ITO in ITA No. 27/Kol/2020 for AY 2012-13 dated 19.02.2024
• Laws Referred To: Income Tax Act, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 263

Judgement Text

" आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी राजपाल यादव, उपाÚय¢ एबं Įी राजेश क ुमार, लेखा सदèय क े सम¢ [Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member ] I.T.A. No. 725/Kol/2024 Assessment Year: 2018-19 Marsons Ltd. (PAN: AABCM 9906 H) Vs. PCIT, Kolkata Appellant / ) अपीलाथȸ ( Respondent / (Ĥ×यथȸ) Date of Hearing / सुनवाई कȧ Ǔतͬथ 23.10.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 20.11.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri C. M . Roy, A.R For the Respondent/ राजèव कȧ ओर से Shri Pradip Kumar Biswas, Addl. CIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 15.03.2024 for AY 2018-19. 2. The assessee has challenged the revisionary order passed u/s 263 of the Act by the PCIT despite the fact that NCLT has already passed final order on 25.1.2022 under the Insolvency and Bankruptcy Code, 2016. 2 I.T.A. No.725/Kol/2024 Assessment Year: 2018-19 Marsons Ltd. 3. Facts in brief are that the assessee company has gone into proceedings under Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as IBC, 2016) before NCLT and NCLT has passed an order vide order dated 25.01.2022 approving the Revised Resolution Plan for registration. The NCLT has also passed the final order on 25.01.2022 approving the registration resolution professional plan. Once the NCLT has passed the order under IBC 2016, then all the claims, debt to Govt. authorities including the taxes stood extinguished. 4. The assessee has challenged the invalid exercise of jurisdiction by the PCIT even when the order was finally passed by NCLT dated 25.01.2022 on the ground that all the outstanding demands to the deptt stands extinguished meaning thereby that the PCIT cannot revise any assessment framed by the AO as erroneous and prejudicial to the interest of the revenue as with the passing of final order by NCLT all the claims by way of taxes and funds to the Department would be extinguished. The case of the assessee finds support from the decision of Co-ordinate Bench of Kolkata in the case of M/s Kohinoor Steel Pvt. Ltd. vs. ITO in ITA No. 27/Kol/2020 for AY 2012-13 dated 19.02.2024 wherein the Co-ordinate Bench has held that as per Insolvency & Bankruptcy Code, 2016 no proceedings can continue against the corporate debtor i.e. the assessee after the order of the NCLT. The Co-ordinate Bench held that in view of this all the appeals before the Tribunal filed by the assessee are dismissed as infructuous. 5. Considering the above facts and circumstances, we are inclined to set aside the order of PCIT u/s 263 of the Act as invalid by allowing the appeal of the assessee. 6. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 20th November, 2024 Sd/- Sd/- (Rajpal Yadav /राजपाल यादव) (Rajesh Kumar/राजेश क ुमार) Vice-President/उपाÚय¢ Accountant Member/लेखा सदèय Dated: 20th November, 2024 SM, Sr. PS 3 I.T.A. No.725/Kol/2024 Assessment Year: 2018-19 Marsons Ltd. Copy of the order forwarded to: 1. Appellant- Marsons Ltd., Marsons House, Chakmir, Budge Budge, Trunk Road,Maheshtala-700142 2. Respondent – PCIT, Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "