TaxTMI 
TaxTMI 
2025 (10) TMI 1215
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....filing the appeal before the Tribunal. The assessee has filed petition seeking for condonation of delay explaining the reasons that, the Company is under Corporate Insolvency Resolution Process [in short "CIRP"] which was commenced by the National Company Law Tribunal [in short "NCLT"], Hyderabad vide order dated 15.11.2022 and Resolution Professional was appointed who is required to manage the operations of the Company as a "going concern". Further, due to the commencement of CIRP, many employees particularly all the Senior Personnel in Finance and Taxation Department have left the organization and is currently operating with very limited staff. Further, the appellant company has received the order of the learned CIT(A) by dismissing the a....
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....n of 576 days in filing the appeal before the Tribunal. We find that, the reasons explained by the assessee in it's petition are seems to be genuine and bonafide by taking note of chronology of events furnished by the assessee. The Hon'ble Supreme Court in the case of Collector, Land Acquisituon vs., MST Katiji [1987] 167 ITR 471 (SC) has laid down certain principles for condoning the delay and also directed the lower courts to follow a lenient approach for condoning the delay. Going by the principles laid down by the Hon'ble Supreme Court in the case of MST Katiji (supra), there is no dispute if an appeal is dismissed on account of technicalities, a meritorious case may be thrown- out of judicial review. Therefore, while condoning the dela....
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.... no compliance from the assessee company. Therefore, the assessment has been completed under best judgement assessment in terms of section 144(1) of the Act and determine the total income of the assessee company at Rs. 140,62,85,042/- by making addition of Rs. 50,75,00,000/- Under sec.14A read with Rule-8D of I.T. Rules, 1962 towards disallowances of expenses relatable to exempt income. 6. Aggrieved by the assessment order, the assessee preferred appeal before the learned CIT(A) on 27.04.2022. Before the CIT(A), the assessee company contended that, Corporate Insolvency Resolution Proceedings has been initiated in terms of provisions of Insolvency and Bankruptcy Code, 2016 by Order from the NCLT, Hyderabad dated 15.11.2022. The appellant ....
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....termining tax liability of the assessee company, but the recovery cannot be made. The learned CIT(A) without appreciating the relevant facts, has simply dismissed the appeal filed by the assessee company in limine, even though, there is no bar for continuing the proceedings and determining tax liability or keeping appeal in abeyance till disposal of the application filed before NCLT, Hyderabad under IBC Code, 2016. Therefore, he submitted that, since the learned CIT(A) has dismissed the appeal of the assessee company 'in limine' without considering the relevant facts, the matter may be remitted back to the learned CIT(A) to decide the issue in accordance with law. In this regard, he relied upon the decision of ITAT, Mumbai F-Bench, Mumbai i....
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....ration and during the moratorium period, no proceedings can be initiated or continued against the assessee company, except, continuing the pending proceedings for determination of the tax liability. Once moratorium is in place, the Department cannot recover any tax liability from the corporate debtor, since, the provisions of IBC Code, 2016 has over-riding effect on other laws including Income Tax which is very clear from section 178(6) of the Income Tax Act, 1961. In the present case, the assessee company has filed appeal before the learned CIT(A) on 27.04.2022 when the moratorium granted by the NCLT, Hyderabad was in operation. Therefore, in our considered view, the learned CIT(A) shall have two options i.e., (i) to keep the proceedings b....