Tribunal dismisses cross appeals, considering impact of liquidation proceedings on legal actions.

The Tribunal addressed cross appeals challenging the Ld.CIT(A) order for various assessment years. It condoned a 10-day delay in filing appeals and admitted them for adjudication. It noted the impact of liquidation proceedings on legal actions, emphasizing that once a liquidation order is passed, no legal proceedings can be initiated against the corporate debtor. The Tribunal highlighted the overriding effect of the IBC over the Income-tax Act in parallel proceedings, citing relevant legal precedents. Ultimately, the Tribunal dismissed the appeals filed by both parties, granting liberty to recall the order when necessary.

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Issues: Cross appeals challenging order of Ld.CIT(A) for various assessment years, delay in filing appeals, effect of liquidation proceedings on legal proceedings, overriding effect of IBC over Income-tax Act, dismissal of appeals.

Analysis:
1. Delay in Filing Appeals: The judgment addresses a 10-day delay in filing cross appeals by the Revenue and the Assessee. The Tribunal, after hearing the parties, decided to condone the delay and admit the appeals for adjudication.

2. Effect of Liquidation Proceedings on Legal Proceedings: The assessee, engaged in construction and infrastructure projects, faced liquidation proceedings initiated by Bank of Baroda under the Insolvency and Bankruptcy Code-2016. The Tribunal noted that no suit or legal proceeding can be initiated against the corporate debtor once a liquidation order has been passed, as per section 33(5) of the IBC Code. The Official Liquidator, appointed by the NCLT, steps into the shoes of the assessee during liquidation.

3. Overriding Effect of IBC over Income-tax Act: The judgment highlights that in cases of parallel proceedings under the Income-tax Act, 1961, and IBC, 2016, the IBC prevails over the Income-tax Act. Citing a Supreme Court decision, it is noted that the IBC Code overrides any inconsistency with other enactments, including the Income-tax Act. Section 178 of the Income-tax Act has been amended to prevent conflicts with the IBC Code.

4. Dismissal of Appeals: Based on the observations and legal precedents, the Tribunal dismissed the cross appeals filed by both the Revenue and the Assessee. The parties were granted liberty to recall the order when necessary. The judgment also referenced a Supreme Court case regarding the issue of limitation in filing fresh appeals.

In conclusion, the Tribunal dismissed the appeals, emphasizing the impact of liquidation proceedings on legal actions, the overriding effect of the IBC over the Income-tax Act, and the importance of adhering to statutory provisions in such cases.

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