2022 (3) TMI 1520

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....d by the Income Tax Appellate Tribunal, Bench "1-1" New Delhi passed in I.T.A. No.988/Del/2013 & 1139/Del/2013 pertaining to Assessment Year 2005-2006. 2. Briefly stated the facts are that the Assessee had filed its return of income on 31.10.2005 declaring a loss of Rs.1,65,43,08,282/-. The case was selected for scrutiny assessment and notice under Section 143 (2) of the Income Tax Act, 1961 was issued. A reference was made to the Transfer Pricing Officer (TPO), as the Assessee had undertaken international transactions with its Associated Enterprises (AEs). A final assessment order under Section 143(3) of the Income Tax Act, 1961 was passed by the Assessing Officer. Assessing Officer rejected the exemption under Section 10B of the Income....

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.... Revenue was disposed of leaving the question of law open as the company in question was in liquidation and was not in a position to pay its outstanding dues including its taxes. The order passed by the Apex Court is reproduced hereinbelow: ''The Official Liquidator has filed a report that the Respondent- Company (Moser Bear India Ltd.) is not financially viable and is under liquidation in proceedings pending before the National Company Law Tribunal. Even if the Appellant-Revenue were to succeed, the Official Liquidator is not in a position to pay the tax amount involved in these appeals. Indisputedly, the respondent-Company has gone in liquidation. The company in liquidation is not in a position to pay its outstan....

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....9-2000 against Penalty u/s 271(1)(c)] on preliminary ground that the company is in liquidation before NCLT and the Liquidator on Affidavit has stated that the company does not have sufficient assets to satisfy Income tax demands, that even if the department were to succeed, no recovery will be possible for department. 3. Further, you have also intimated that, the Hon'ble High Court, Delhi has directed your goodself to seek instructions as to whether the Revenue would like to pursue the appeals (ITA No.1204/2018 and ITA 793/2019 filed by the department. 4.1 As pointed out by you, the assessee is desirous of pursuing its appeals. As such there may be situation, that , in case the assessee gets a favourable order, he may be e....