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2021 (7) TMI 1445 - AT - Income TaxIncome tax proceedings against company dissolved / insolvent - Revision u/s 263 against company wherein proceedings u/s 7 of Insolvency and Bankruptcy code, 2016 has already been initiated against - HELD THAT:- Admittedly, the proceedings under section 7 of Insolvency and Bankruptcy code, 2016 have been initiated by the National Company Law Tribunal in CP(IB) 307 of 2020 vide order dated 9 March 2021. The copy of the order is placed on record. There are prohibitions for the institution of fresh proceedings under section 14 of the Code 2016 against such company which overrides the provisions of Income Tax Act. As per section 14 of the Code, the order of the NCLT for initiation of liquidation of the Corporate Debtor would result in a moratorium on the initiation or continuation of legal proceedings by or against the corporate debtor being the assessee. We hold that the order passed under section 263 of the Act is not maintainable and liable to be quashed. Before parting, it is pertinent to note that AO is at liberty to make an application for re-institution of this appeal after the resolution process ends under IBC 2016. Ground of appeal of the assessee is allowed.
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