Dismissal of Appeal in ITA 1232/DEL/2022 Due to NCLT Proceedings
The Income Tax Appellate Tribunal (ITAT) Delhi’s recent judgment in the case bearing number ITA 1232/DEL/2022 presents a remarkable insight into the intricacies of income tax appeals and the significant impact of proceedings before the National Company Law Tribunal (NCLT). This case involved the Assistant Commissioner of Income Tax, Central Circle-II, Noida (Appellant) against Swati Health and Education Services Pvt. Ltd., situated in Preet Vihar (Respondent) concerning the assessment year 2014-15.
Background of the Case
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The Role of NCLT in Taxation Disputes
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Judgment Summary
The primary contention in this case revolved around the dismissal of the appeals filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals)-4, Kanpur, dated 14.02.2022 for the assessment years 2009-10, 2010-11, 2013-14, and 2014-15. The addition made by the Assessing Officer in respect of loans received by the assessee and share application money introduced by the assessee were the focal points.
During the hearing, the ld. Counsel for the assessee argued that the appeal for the assessment year 2009-10, identified as ITA No. 651/Del/2022, was dismissed by the Tribunal on 24.02.2023 due to the admittance of an application by NCLT’s Principal Bench in New Delhi. This was in terms of section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, which led to the imposition of a moratorium as outlined in section 14(1) of IBC. It was thereby concluded that the current appeals concerning the Revenue were infructuous.
The Tribunal heard the submissions and, aligning with the order for the assessment year 2009-10, dismissed the present appeals with an allowance for the parties to seek revival post the conclusion of NCLT proceedings.
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Implications of the Judgment
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Conclusion
The dismissal of the appeals in ITA No. 1232/DEL/2022 marks a significant precedent concerning the interplay between income tax appellate processes and NCLT proceedings. It underscores the essentiality of considering ongoing NCLT matters before proceeding with appellate disputes in the income tax domain, thereby ensuring that judicial resources are utilized judiciously and efficiently.
