Case Number: ITA 1679/DEL/2019
Appellant: Uniworld Sugar Pvt. Ltd., Noida
Respondent: ACIT Circle-03, Noida
Assessment Year: 2014-15
Case Filed On: 2019-02-28
Order Type: Final Tribunal Order
Date of Order: 2023-09-11
Pronounced On: 2023-09-11
The case of Uniworld Sugar Pvt. Ltd. vs ACIT Circle-03, Noida (ITA 1679/DEL/2019) revolves around the appeal made by Uniworld Sugar Pvt. Ltd. against the additions made by the Assessing Officer (AO) for the assessment year 2014-15. Filed on 28th February 2019, this case was adjudicated by the Income Tax Appellate Tribunal (ITAT) in New Delhi. The final tribunal order was issued on 11th September 2023, with the judgment pronounced on the same day.
Uniworld Sugar Pvt. Ltd., based in Noida, filed its return of income for the assessment year 2014-15. The AO made two significant additions: Rs. 10,49,39,280/- towards share premium amount received and Rs. 1,57,34,870/- for payments made to ED&F Man Treasury Management PLC, U.K. Aggrieved by these additions, Uniworld Sugar Pvt. Ltd. appealed to the Commissioner of Income Tax (Appeals) [CIT(A)] in Muzaffarnagar, who confirmed the AO’s order. This led to the appellant filing a further appeal with the ITAT.
The appellant raised the following grounds of appeal:
However, none appeared on behalf of the assessee during the hearings. The appellant’s representative had filed a letter stating that the company was under the management of an Interim Resolution Professional (IRP) due to ongoing proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. The letter mentioned that as per Section 14(1) of the IBC, all proceedings pending before any court or tribunal could not continue during the moratorium period.
The ITAT, led by Shri Chandra Mohan Garg, Judicial Member, and Shri M. Balaganesh, Accountant Member, examined the appeal on 4th September 2023. The tribunal noted that the appellant company was under insolvency resolution proceedings, and an IRP was appointed. The IRP had not filed a form to represent the appellant before the tribunal. As per Section 14 of the IBC, no proceedings shall remain pending with any court or tribunal once the insolvency resolution proceedings are initiated.
The tribunal decided to dismiss the appeal of Uniworld Sugar Pvt. Ltd. as not maintainable, providing liberty to the IRP to file a miscellaneous application after the completion of the insolvency resolution process. The tribunal’s final judgment stated:
In view of the above, we deem it fit and appropriate to dismiss this appeal of the assessee as not maintainable with a liberty given to IRP to prefer Miscellaneous Application, if so desired, after the completion of Insolvency Resolution Process, in which event, this appeal shall be restored.
In the result, appeal of the assessee is dismissed as not maintainable.
Order pronounced in the open court on 11th September, 2023.
-Sd/- (CHANDRA MOHAN GARG) JUDICIAL MEMBER
-Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER
This case highlights the procedural impact of insolvency proceedings on ongoing tax litigation. Similar cases underline the necessity for compliance with the IBC and the importance of having an IRP represent the company in legal matters during the moratorium period.
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