ITAT Dismisses Appeal by Income Tax Department as NCLT Admitted Application filed by Assessee u/s 14 of IBC [Read Order]

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has dismissed the appeal filed by the Income Tax department as the National Company Law Tribunal (NCLT) had admitted the application filed by the assessee under Section 14 of the Insolvency and Bankruptcy Code (IBC) 2016.

The revenue had raised this ground in its appeal that the Commissioner of Income Tax (Appeals) had erred in law and on the facts of the case in deleting the addition made by the AO on account of share premium received under Section 56(2) (viib) of Income Tax Act, 1961 and to modify, add or forego any grounds of appeal at any time before or during the hearing of this appeal against the assessee Dharitri Maa Urja Pvt.

Vivek Upadhyay, on behalf of the revenue submitted that the National Company Law Tribunal (NCLT) had admitted the application filed under Insolvency and Bankruptcy Code 2016 (IBC) and the same had been admitted in IB-408/ND/2022 vide order dated 09/06/2023, therefore, submitted that, the present appeal was liable to be dismissed.

N.K. Bansal, on behalf of the revenue agreed with the proposition of the Assessee’s Representative and submitted that an opportunity might be given to the Department to approach the Tribunal if so, necessary.

The two-member Bench of N . K . Billaiya, (Accountant Member) and Yogesh Kumar U.S., (Judicial Member)  considering the fact that the NCLT in IB-408 (ND-2022) vide order dated 09/06/2023 had declared moratorium consequently, as per Section 14 of the Insolvency and Bankruptcy Code 2016, it was order to prescribe the registration of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement decree or order in any court of law Tribunal arbitration, penal or other authorities.

The Bench accordingly, dismissed the Appeal filed by the Revenue with an opportunity to approach the Tribunal in case of any necessity on any cause of action touching the issues involved in the present appeal.

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