TaxTMI 
TaxTMI 
2026 (9) TMI 781
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....ed order emanated from the order of the Assessment Unit, Income Tax Department (for brevity 'Ld. AO'), order passed under Section 147 r.w.s. 144B of the Act, date of order 25.05.2023. 2. The assessee filed the additional ground by challenging the jurisdiction of the Ld. PCIT for passing the order u/s. 263 after the order of the National Company Law Tribunal (NCLT) admitting the application u/s. 7 of the IBC Act against the assessee which is bad in law. The relevant additional ground of the assessee is reproduced as below: "1. The learned Commissioner of Income Tax (CIT) erred in passing the order u/s. 263 of the Act during the moratorium period. The appellant submits that section 14 r.w.s.238 of the IBC Act prohibits th....
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....papers and proceedings in the present Writ Petition. The Hon'ble Delhi High Court in the case of Monnet Ispat and Energy Limited (supro) has clearly held that appeals filed by the Revenue before the High Court challenging the order passed by the ITAT could not proceed in light of the provisions of Section 14 of the IBC, 2016. Since this is a short order, the same is reproduced in its entirety. "1. The Court has heard the learned counsel for both parties. The provisions of the Insolvency and Bankruptcy Code, 2016 (Code') and, in particular, Section 14 thereof has been perused. 2. It appears to the Court that Section 238 of the Code is categorical that the Code will apply, notwithstanding anything inconsistent therew....
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....ermission being sought from the NCLT for continuation of the continuation of pending proceedings against the Respondent in other fora. In the order dated 18th July 2017 is clear that the moratorium continues "till the completion of the corporate Insolvency resolution process or until this Bench approves the resolution plan under sub-Section (1) of Section 31 or passes an order for liquidation of corporate debtor under Section 33, as the case may be." 5. Consequently, these appeals are disposed of with liberty to the Appellate- Department to revive them subject to the further orders of the NCLT. 6. Copy of the order be given dasti under the signature of the Court Master." (emphasis supplied) 6. This decision of ....
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....ct but under the Customs Act, 1962. Secondly, we find that another decision of the Hon'ble Supreme Court in the case of S.V. Kandeakar v. V.M. Deshpande (1972) 1 SCC 438 was relied upon to come to the conclusion that the Customs Department could initiate assessment or reassessment of duties and other levies but could not initiate recovery in violation of Section 14 or 33 (5) of the IBC, 2016. We find that the decision relied upon in the case of V. N. Deshpande (supra) was considered by an earlier Coordinate Bench of the Hon'ble Supreme Court in the case of P. Mohanraj v. Shah Brothers Ispat (P.) Ltd. [2021] 125 taxmann.com 39/167 SCL 327 (SC)/(2021) 6 SCC 258. In that decision also, the decision in V. N. Deshpande's (supra) case....
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.... 14 ceases, the Revenue is free to revive the assessment proceedings, if they are otherwise entitled to in law. 11. Rule is made absolute in the aforesaid terms. However, in the facts and circumstances of the case, there shall be no order as to costs." 5. The Ld. DR supported the order of the Revenue authorities and contended that appropriate liberty may be granted to the Revenue to initiate or revive the proceedings after cessation of the moratorium period, in accordance with law. 6. We have heard the rival submissions and perused the material available on record. The short legal issue raised by the assessee through the additional ground is whether the revisional proceedings under section 263 of the Act could have been conti....
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....tment in case of conflicting provisions, by virtue of a non obstante section 238 of IBC Code 2016, the proposed amendment in IBC Amendment Bill 2019, provides that the bankruptcy resolution or liquidation arrived at under IBC shall be binding on central, state and local governments including the income tax and other similar tax authorities. The Hon'ble Bombay High Court has, however, expressly observed that once the moratorium ceases, the Revenue would be free to revive the proceedings, if otherwise permissible in law. 8. In the present case, the impugned revisional order under section 263 was passed after commencement of the moratorium pursuant to the order of the Hon'ble NCLT dated 16.09.2025. Therefore, respectfully following the rati....