Case Number: ITA 686/DEL/2019
Appellant: DCIT, Central Circle-18, New Delhi
Respondent: Shakti Bhog Foods Pvt. Ltd., New Delhi
Assessment Year: 2012-13
Case Filed on: 2019-01-31
Order Type: Final Tribunal Order
Date of Order: 2023-01-18
Pronounced on: 2023-01-18
Result: Appeals Remitted for Re-adjudication
The case revolves around the cross appeals filed by the assessee, Shakti Bhog Foods Pvt. Ltd., and the Department against the orders passed by the Commissioner of Income Tax (Appeals)-XXIX, New Delhi, for the assessment years 2009-10 to 2015-16. The primary focus of this summary is the assessment year 2012-13. The matter was heard and adjudicated by the Income Tax Appellate Tribunal (ITAT), Delhi Bench “G”.
Shakti Bhog Foods Pvt. Ltd. and Shakti Bhog Snacks Limited filed multiple appeals against the assessment orders dated 30.12.2017 and 29.12.2017, respectively. The assessments were made under Section 143(3) read with Section 153A of the Income Tax Act, 1961. The Department, represented by the Deputy Commissioner of Income Tax (DCIT), also filed appeals against the orders passed by the CIT(A)-XXIX, New Delhi.
During the hearing on 18.01.2023, it was noted that the assessee companies were under Corporate Insolvency Resolution Process (CIRP) pursuant to an order by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi. The insolvency proceedings were initiated based on an application filed by the State Bank of India due to default in loan accounts.
The Departmental Representative (DR), Shri H.K. Choudhary, presented the case for the Revenue. The DR highlighted the ongoing insolvency proceedings and submitted relevant documents, including a public announcement under the Insolvency and Bankruptcy Code, 2016, and the NCLT order dated 22.09.2022.
The Tribunal observed that the assessee companies were undergoing insolvency proceedings, and full facts regarding the moratorium period were not available. Given the complexity and the involvement of multiple legal proceedings, the Tribunal deemed it appropriate to remit the appeals to the CIT(A) for re-adjudication in accordance with the law, considering the provisions of the Insolvency and Bankruptcy Code, 2016.
In view of the submissions made by the DR and the records presented, the Tribunal decided to remit all the captioned appeals to the CIT(A) for appropriate adjudication. The CIT(A) was directed to consider all orders passed by the NCLT and other superior forums while passing the appropriate orders.
The Tribunal concluded that, given the ongoing insolvency proceedings and the need for a detailed examination of the facts and legal provisions, the appeals should be remitted to the CIT(A). This decision effectively deferred the final resolution of the tax disputes for the assessment years in question, including 2012-13, pending further adjudication by the CIT(A).
In the result, the appeals of both the assessee and the Revenue are allowed for statistical purposes, and the matters are remitted to the CIT(A) for re-adjudication.
Order pronounced in the open Court on 18/01/2023.
Copy forwarded to:
True Copy
Assistant Registrar
ITAT New Delhi
Date of Dictation: 18.01.2023
Date on which the typed draft is placed before the dictating Member: 18.01.2023
Date on which the typed draft is placed before the Other Member: N/A
Date on which the approved draft comes to the Sr. PS/PS: 18.01.2023
Date on which the fair order is placed before the Dictating Member for pronouncement: 18.01.2023
Date on which the fair order comes back to the Sr. PS/PS: 18.01.2023
Date on which the final order is uploaded on the website of ITAT: 18.01.2023
Date on which the file goes to the Bench Clerk: 18.01.2023
Date on which the file goes to the Head Clerk: N/A
Date on which the file goes to the Assistant Registrar for signature on the order: N/A
Date of dispatch of the Order: N/A
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