Case Number: ITA 5507/DEL/2019
Appellant: DCIT, Circle-11(1), New Delhi
Respondent: Hotline CPT Ltd., New Delhi
Assessment Year: 2015-16
Case Filed On: 2019-06-21
Order Type: Final Tribunal Order
Date of Order: 2022-12-05
Pronounced On: 2022-12-05
In the Income Tax Appellate Tribunal Delhi Bench ‘H’, the case of DCIT vs Hotline CPT Ltd., New Delhi was heard through video conferencing. The appellant, DCIT, Circle-11(1), New Delhi, sought to appeal against the order of the CIT(A)-4, New Delhi, which had allowed the appeal of the assessee, Hotline CPT Ltd., against the levy of penalty under Section 271(1)(c) of the Income Tax Act.
The appellant, DCIT, Circle-11(1), New Delhi, filed an appeal against Hotline CPT Ltd., New Delhi, for the assessment year 2015-16. The CIT(A)-4, New Delhi, had allowed the appeal of the assessee against the levy of penalty under Section 271(1)(c) of the Income Tax Act. The appeal was directed against the order dated 12.04.2019 of the CIT(A).
During the virtual hearing held on 01.12.2022, the learned Senior DR, Ms. Yamini, represented the Revenue. However, none appeared for the assessee. The records showed that written submissions on behalf of the assessee dated 02.06.2022 were on record. On the last date of hearing, the bench had directed the DR to call for a report from the Assessing Officer in respect of the orders of the National Company Law Tribunal (NCLT).
The hearing was presided over by Shri Anil Chaturvedi, Accountant Member, and Shri Anubhav Sharma, Judicial Member. During the hearing, the learned Senior DR sought further opportunity to obtain the report, submitting that the report was awaited. However, the bench decided that no further opportunity was justified as there was already a copy of the order dated 31.07.2020 of NCLT Bench-3, New Delhi, on record. This order indicated that the corporate insolvency resolution process against the assessee company had culminated in an order for initiation of liquidation proceedings against the assessee.
The Hon’ble Supreme Court of India, in its judgment dated 13-4-2021 in the case of Ghanashyam Mishra and Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. [2021 SCC OnLine SC 313], settled the issue of whether statutory creditors, including the Central Government, State Government, and any local authority, are bound by a resolution plan once it is approved by an adjudicating authority under sub-section (1) of Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC). The relevant extracts from the said order were reproduced for ease of understanding.
In light of the aforesaid judgment, all claims of individuals and including Government stand culminated.
Accordingly, any claim of the Revenue in regard to the present assessment year also stands culminated in accordance with the insolvency proceedings.
The appeal was dismissed, however, with a caveat that in case there is any change in circumstances leading to the revival of the claim of the Revenue, the application for restoration of the present appeal may be filed by the Revenue.
The case of DCIT vs Hotline CPT Ltd., New Delhi (ITA 5507/DEL/2019) exemplifies the resolution of tax disputes through the insolvency proceedings under the Vivad Se Vishwas Scheme 2020. By opting for this scheme, the appellant successfully withdrew his appeals, leading to the dismissal of the cases by the Tribunal.
The decision was officially documented and the order was circulated to all relevant parties, including the appellant, respondent, CIT, CIT(A), and the DR, ITAT. This case highlights the efficacy of the Vivad Se Vishwas Scheme in resolving prolonged tax disputes amicably and efficiently.
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘H’: NEW DELHI
(Through Video Conferencing)
BEFORE
SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND
SHRI ANUBHAV SHARMA, JUDICIAL MEMBER
ITA No.5502/Del/2019
Assessment Year : 2011-12
ITA No.5503/Del/2019
Assessment Year : 2012-13
ITA No.5504/Del/2019
Assessment Year : 2013-14
ITA No.5505/Del/2019
Assessment Year : 2014-15
ITA No.5506/Del/2019
Assessment Year: 2015-16
Sh. Laxman Das Thadani
C/o. Anil Jain D.D. & Co.,
611, Surya Kiran Building,
K.G.Marg,
Delhi- 110001
PAN: AABPT6601P
Vs.
ACIT,
Circle-47(1)
New Delhi
(Appellant) (Respondent)
Appellant by : None
Respondent by : Sh. R.K.Gupta, Sr. DR
Date of hearing: 15.04.2021
Date of pronouncement: 15.04.2021
ORDER
PER G.S. PANNU, VP:
These appeals by the assessee for the assessment years 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 respectively are directed against the order of learned CIT(A)-16, New Delhi, dated 25.04.2019.
2. None appeared on behalf of the assessee at the time of virtual hearing. The learned counsel for the assessee, vide its letter dated 05.04.2021, received by email, has requested for withdrawal of the appeals filed by him and stated that the assessee has opted to settle the dispute relating to the tax arrears for the assessment years under consideration under the Vivad Se Vishwas Scheme, 2020. A certificate to this effect under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020 has also been filed.
3. Learned Senior DR has no objection.
4. In view of the above, we accept the request of the assessee for withdrawal of the appeals.
5. In the result, the appeals of the assessee are dismissed as withdrawn.
Above decision was announced on conclusion of Virtual Hearing on 15th April, 2021.
Sd/- Sd/-
(KUL BHARAT) (G.S. PANNU)
JUDICIAL MEMBER VICE PRESIDENT
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR, ITAT
By Order
Assistant Registrar,
ITAT, Delhi
DCIT vs Hotline CPT Ltd., New Delhi (ITA 5507/DEL/2019): Appeal Dismissed Due to Insolvency
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