Case Number: ITA 607/DEL/2019
Appellant: Shakti Bhog Foods Pvt. Ltd., New Delhi
Respondent: ACIT, Central Circle-27, New Delhi
Assessment Year: 2010-11
Date of Order: 2023-01-18
Pronounced On: 2023-01-18
Case Filed On: 2019-01-29
Order Type: Final Tribunal Order
The case of Shakti Bhog Foods Pvt. Ltd. vs ACIT, Central Circle-27, New Delhi, ITA No. 607/DEL/2019, pertains to the assessment year 2010-11. The case was filed on 29th January 2019 and involves a dispute over tax assessments. The final order was pronounced on 18th January 2023.
Shakti Bhog Foods Pvt. Ltd., a significant player in the food industry, filed its income tax return for the assessment year 2010-11. The return led to scrutiny and reassessment by the Income Tax Department, which resulted in a dispute over the assessed tax. This led to the appellant filing an appeal against the order passed by the Commissioner of Income Tax (Appeals)-XXIX, New Delhi, dated 27th November 2018. The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’.
The appellant, Shakti Bhog Foods Pvt. Ltd., faced reassessment of its income which led to additional tax demands. Multiple appeals were filed for various assessment years including 2010-11, leading to a complex legal scenario. The company was also undergoing proceedings under the Insolvency and Bankruptcy Code, 2016, which added another layer of complexity to the case.
The appeal was heard by the ITAT, Delhi Bench ‘G’, comprising Shri Kul Bharat, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member. During the hearing, it was revealed that Shakti Bhog Foods Pvt. Ltd. was under the purview of corporate insolvency resolution process as per the orders of the National Company Law Tribunal (NCLT).
The case was heard on 18th January 2023. The revenue represented by Shri H.K. Choudhary, CIT-DR, indicated that the company was undergoing insolvency proceedings initiated by the State Bank of India. Despite multiple opportunities, the appellant did not appear for the hearing. The ITAT decided to proceed ex-parte due to the prolonged nature of the case.
The ITAT noted that the appellant was under the corporate insolvency resolution process, and several orders had been passed by the NCLT regarding the default in loan accounts. Given the circumstances, the tribunal deemed it appropriate to remit all the captioned appeals to the file of the CIT(A) for proper adjudication in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
The tribunal directed the CIT(A) to take into account all relevant orders passed by the NCLT and other superior forums while passing the appropriate orders. This decision was made to ensure a fair and lawful resolution of the disputes considering the ongoing insolvency proceedings.
In conclusion, the ITAT remitted the appeals filed by Shakti Bhog Foods Pvt. Ltd. to the CIT(A) for appropriate adjudication, considering the provisions of the Insolvency and Bankruptcy Code, 2016. This decision underscores the importance of integrating insolvency proceedings with tax litigation to ensure comprehensive resolution of disputes.
The decision was pronounced in the open court on 18th January 2023.
Members:
Kul Bharat, Judicial Member
Pradip Kumar Kedia, Accountant Member
Dated: 18th January 2023
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
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