OMSHRI DEVPROCON LIMITED,KALOL, GANDHINAGAR V. DCIT, CIRCLE 3(1)(1), AHMEDABAD

ITA 133/AHD/2024

AI Insights

Omshri Devprocon Limited filed an appeal against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which had upheld the assessment order passed by the Assessing Officer (AO) for the Assessment Year 2018-19. The AO had made significant additions to the income of the assessee, leading to a demand of Rs.7,79,32,510/-. The assessee contested the additions and the interest charged under various sections of the Income Tax Act, 1961, as well as the initiation of penalty proceedings. However, the primary legal hurdle in this appeal was the ongoing Corporate Insolvency Resolution Process, which led to a moratorium on recovery actions against the company, rendering the tax demand and related proceedings infructuous.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470505 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961, Insolvency & Bankruptcy Code, 2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R.N. DSOUZA

Judgement Text

"ITA No.133/Ahd/2024 Assessment Year: 2018-19 Omshri Devprocon Limited vs. DCIT Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.133/Ahd/2024 Assessment Year: 2018-19 Omshri Devprocon Limited, C/o. Sanjay Thakkar, Dev House, Opp. Aranya Farm, Near Electrotherm, Shilaj-Palodiya Road, Palodiya, Kalol, Gandhinagar – 382 115. Gujarat. [PAN – AACCD 1788 P] Vs. The Deputy Commissioner of Income Tax, Circle – 3(1)(1), Ahmedabad. (Appellant) (Respondent) Assessee by None Revenue by Shri R.N. Dsouza, CIT-DR Date of Hearing 06.03.2025 Date of Pronouncement 12.03.2025 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER: This appeal is filed by the Assessee against order dated 12.12.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeal: “1. The learned AO has erred in computing the total income that of Rs.15,74,45,440/- as against that of income returned Rs.76.85,440/- by disallowing and making addition of Rs.14,97,60,000/- considering the assessee’s claim as not acceptable. ITA No.133/Ahd/2024 Assessment Year: 2018-19 Omshri Devprocon Limited vs. DCIT Page 2 of 3 2. In law and in fact and circumstances of the appellant's case the learned AO has grossly erred in charging interest under section 234A/B/C/ of the Income Tax Act, 1961. 3. The learned AO is not justified in initiating penalty proceedings under section 270A of The Income Tax Act, 1961 with respect to above addition. 4. That the appellant prays to stay demand of Rs.7,79,32,510/- made by learned AO for the year under consideration. 5. The appellant has preferred an appeal to the CIT(A) against the order passed u/s.143(3). The learned CIT(A) dismissed the appeal The appellant has preferred further appeal to the ITAT for the above- mentioned grounds Note: Application of the company is admitted to Corporate Insolvency Resolution Process under section 9(5) of the IBC Act, 2016 as per order passed on 04.08.2022 by NCLT, Ahmedabad bench” 3. The ground of appeal taken by the assessee categorically mentions that the application of the Company is admitted to Corporate Insolvency Resolution Process under Section 9(5) of the Insolvency & Bankruptcy Code (IBC), 2016, as per order passed on 04.08.2022 by the NCLT Ahmedabad Bench. Thus, in the light of this, as per Section 14 of the Insolvency & Bankruptcy Code, 2016, adjudicating authority shall by an order declared moratorium for prohibiting the institutions of suits transferring or disposing by Corporate Debtor of its assets, an action to foreclose, recover or enforce any security and the recovery of any property by an owner which include statutory dues owned to the Central Government or State Government and if not part of resolution plan stands extinguished. Thus, in the light of this, the appeal becomes infructuous and hence the appeal of the assessee is dismissed. 4. In the result appeal of the assessee is dismissed. Order pronounced in the open Court on this 12th March, 2025. Sd/- Sd/- (DR. BRR KUMAR) (SUCHITRA KAMBLE) Vice President Judicial Member Ahmedabad, the 12th March, 2025 ITA No.133/Ahd/2024 Assessment Year: 2018-19 Omshri Devprocon Limited vs. DCIT Page 3 of 3 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad "