TaxTMI 
TaxTMI 
2024 (3) TMI 654
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....se by confirming the addition of Rs. 83750000/- made by the AO u/s 68 of the Act while treating the same as assessee's own money. 3. That the appellant craves to leave, add or amend any of the grounds during the course of appellant proceedings. 3. The Registry has informed us that the appeal was filed with a delay of 18 days. The assessee submitted the condonation petition, and the reasonis described that the assessee was ill due to injury of left shoulder, so the delay was caused for 18 days. The Ld. D.R had not made any objection for condoning of delay. Accordingly, we condone the delay of eighteen (18) days. 4. Brief fact of the case is that the assessment was framed u/s 143(3) of the Act against the assessee with an addition amount to Rs. 83,75,000/- u/s 68 of the Act related to transaction of share capital and share premium which was taken from different entities against the high premium. 5. Aggrieved the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the order of Ld. AO. Being aggrieved, the assessee filed an appeal before us. 6. When the hearing was called for, Ld. A.R, Mr. Miraj D Shah appeared and placed that the assessee has filed the petition....
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.... effect from the date of admission till the completion of the corporate insolvency resolution process. viii. Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be. ix. Necessary public announcement as per Section 15 of the IBC, 2016 may be made. x. Shri Ashok Kumar Sarawagi, IP Registration No. IBBI/IPA-001/IPP00171/ 2017-18/10340 email id [email protected] is appointed as Interim Resolution Professional for ascertaining the particulars of creditors and convening a Committee of creditors for evolving a resolution plan. xi. The Operational Creditor to pay a sum of Rs. 1,00,000/- (Rupees One Lakh only) to IRP as advance fee as per Regulation 33(2) of IBBI (Insolvency Resolution process for Corporate Persons) Regulation 2016 which shall be adjusted from final bill. In case further funds are required during Corporate Insolvency Resolution Process and, if not ....
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....f adjudicating authority, it shall be binding on all the respective entities, including corporate debtor and its employees, members, creditors, guarantors and other stakeholders. The said section 31 was subsequently amended in 2019 to clarify that the term "other stakeholders" include Central Government, State Government, and other local bodies, and this amendment has been held by the Courts as having retrospective effect being clarificatory and declaratory in nature. 11. Keeping in view the legal position emanating from the discussion made above in the light of judicial pronouncements of the Hon'ble Supreme Court, it is thus clear that the order passed by the National Company Law Tribunal under section 31 of the Insolvency and Bankruptcy Code, 2016 has overriding effect over anything inconsistent contained in the Income-tax Act and it shall be binding on all the respective entities including other stakeholders, which include Central Government, State Government and other Local Bodies. As per the said order delivered in the case of the assessee-company affirming the Resolution Plan, all dues under the provisions of the Income-tax Act including taxes, duty, penalties, interest....
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....ould be considered to be not payable by the Company. In the light of the order of the National Company Law Tribunal (NCLT) dated 12-2-2018 passed in assessee's case, we deem it fit to restore the case for the assessment year under consideration before us to Assessing Officer for taking necessary action in accordance with law. 13. In the result, the appeal of the assessee is treated as allowed for statistical purposes as indicated above." 8. The Ld. D.R fully relied on the order of revenue authorities and not made any adverse comment against the submission of the assessee. 9. We heard the rival submission and considered the documents available in the record. The operational creditor of assessee has filed the petition before the NCLT and as per the assessee's own case for its CRIP as per rule 4 of Insolvency & Bankruptcy Code, 2016 no proceedings can continue against the corporate debtor i.e. the assessee after the order of the NCLT. In view of this and drawing further force from the order of Co-ordinate Bench of ITAT, Kolkata in the case of Palogix Infrastructure Pvt. Ltd. (supra) all the appeals before the Tribunal filed by the assessee is dismissed as infructuous. Hon'ble ....
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....of 2002); (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. Explanation-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concession, clearances or a similar grant or right during the moratorium period. (2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. (2-A) Where the interim resolution professional or resolution professional, as the case may be, considers the supply of goods or services critical to p....
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....ors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. 102.2. The 2019 Amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which the I&B Code has come into effect. 102.3. Consequently, all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval under Section 31 could be continued." 9.3. In the matter of Committee of Creditors of Essar Steel India Limited,(2020) 8 SCC 531, Hon'ble Supreme Court has expressed that a successful resolution application cannot be faced with undecided claim after the resolution plan is accepted as this would amount to a hydra head popping up, leading to the uncert....
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....e issued under Sections 13 and 15 of the IBC. /4s such, on the date on which the Resolution Plan was , approved by the learned NCLT, all claims stood frozen, and no claim, which is not a part of the Resolution Plan, would survive. In that view of the matter, the appeals deserve to be allowed only on this ground. It is held that the claim of the respondent, which is not part ofthe Resolution Plan, does not survive. The amount deposited by the appellant at the time of admission of appeals along with interest accrued thereon is directed to be refunded to the appellant.'' 9.5. Thus, the law is well settled that on the approval of the resolution plan in terms of Section 31 of the IBC, the dues including the statutory dues of the Government or local authority, if not part of the resolution plan, gets extinguished and no proceedings in respect thereof for a period prior to the date of approval under Section 31 would continue. The decision of the Hon'ble Calcutta HighCourt in West Bengal State Electricity Distribution Company Limited vs. Sri Vasavi Industries Limited [[2022 (7) TMI 580 - CALCUTTA HIGH COURT]] makes it clear that any claim not made during the course of CIRP and before ap....
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....ode along with the decision in Ghanashyam Mishra And Sons (supra), clearly shows that once the proceedings have commenced by institution of application under section 7 or 9 or 10 of the Code, the continuance of the pending proceedings is prohibited and when once they reach the logical conclusion with due approval of the resolution plan by the Adjudicating Authority under Sub-Section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. At any rate, for the time being, this appeal cannot be proceeded with during the continuation of the proceedings under the Code. 9.10. However, depending upon the result of such proceedings before the adjudicating authority in respect of the corporate debtor, appropriate steps if any, may be taken by the appellant. We, therefore, granting, leave to the appellant to seek the restoration of the appeal, if necessitated by the orders in the Corporate Insolvency Resolution Proceedings. 9.11. The issue of limitation in filing fresh....