TaxTMI 
TaxTMI 
2024 (7) TMI 503
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....er dated 29.12.2019 passed u/s. 143(3) r.w.s 147 of the income tax act 1961, hereinafter referred to as an 'Act‟. 2. The brief facts leading to the appeal state that the appellant assessee was a limited company engaged in the business of ship operation and ceased to exist on 01.04.2011 by demerging part of its business in M/s. Valun Global Ltd (VGL) and with remaining business got amalgamated with M/s. Varun Resources Ltd (VRL). Appellant did not file its return of income for the A.Y. 2012-13 as it was not in existence due to aforesaid demerging/amalgamation. The notice u/s. 148 of the Act was issued. Subsequently assessing officer, gathered information from 26AS. Notice u/s. 142(1) of the act was issued by assessing officer as....
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....n facts and circumstances of the case and in law, the CIT(A) is justified in deleting the addition made u/s 147 rws 143(3) of the Income tax Act without considering that the Moratorium under section 14 of the IBC Code is in respect of institution of suits or continuation of pending suits in a court of law or for recovery of the property of the corporate debtor therefore the Income Tax assessment proceeding for determination of total income is not covered by the Moratorium under section 14 of the IBC Code? 3. Whether on facts and circumstances of the case and in law the CIT(A) erred in deleting the addition made in the assessment order u/s 143(3) r.w.s 147 of the Income-Tax Act because the assessee company is under liquidation proce....
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....der IBC. NCLT has appointed Mr. Sanjeev Maheshwari as official liquidator of the respondent corporate debtor. 8. Learned Representative for the revenue department has submitted that no leave of the adjudicating authority is necessary to be obtained by the Revenue Department in respect of assessment proceedings. Revenue has referred Official Liquidator, High Court,...Vs Commissioner of Income Tax, West Bengal, AIR 1970 CAL349, in support thereof. The relevant para 49a read as under: "49a. Assessment proceedings and recovery proceedings, although both are proceedings under the Income-tax Act, do not, to my mind, stand on the same footing in so far as leave under Section 446(1) of the Companies Act, 1956 is concerned. So long as th....
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....446 of the Companies Act provides that, when a winding up order is made or the official liquidator is appointed as provisional liquidator, no suit or legal proceedings should be commenced or if pending on the date of the winding, winding-up order, shall be proceeded with, against the company, Except with the leave of the court and subject to such terms as may be imposed. Sub-section (2) further lays down that the court which is winding-up the company shall, notwithstanding anything contained in any other law in force, have jurisdiction to entertain or dispose of, inter alia, any suit or proceeding by or against the company, whether such suit or proceeding has been instituted or is instituted. A careful examination of these provisions of law....
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....e will override the provisions of Income Tax Act 1961. The three judges bench of Hon'ble Supreme Court in Civil Appeal No. 7667 of 2021, Sundaresh Bhatt, Liquidator of ABC Shipyard V. Central Board of Indirect Taxes and Customs, vide order dated 26.08.2022, has held that the respondent could only initiate assessment or re-assessment of the duties and other levies, once a moratorium is imposed in terms of Section 14 or 33(5) of the IBC as the case may be, the respondent authority, only has limited jurisdiction to assess/determine the quantum of the customs duty and other levies. The respondent authority does not have the power to initiate recovery of dues. Liquidator has an obligation to ensure that assessment is legal and he has been provid....