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TMI Blog2018 (12) TMI 1866X X X X Extracts X X X X X X X X Extracts X X X X ..... both dated 31.03.2018 issued by the second respondent and quash the same as being without jurisdiction, arbitrary, illegal and violative of the Constitution of India and the provisions of the Income Tax Act, 1961. 2. Learned counsel for the petitioner-Companies submitted that the petitioner-Companies are engaged in the business of providing cellular mobile services pursuant to their Service Licences granted by the Department of Telecommunications, Government of India within various Telecom Circles notified across India. While so, the respondents have initiated action simultaneously in respect of the two group of companies, of which the petitioner-Companies form part of, on a pre-determined basis to recover the demand made. The petitioner- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applications preferred by the petitioners and initiated CIRP against the petitioner-Companaies and declared "Moratorium" in terms of Section 14 of the IBC. Since the order has already been passed by the NCLT on 12.03.2018 / 19.03.2018, granting Moratorium by virtue of Section 14 of the IBC, no recovery proceedings could be initiated against the petitioner-Companies' properties. Moreover, as per Section 14(1)(a) of the IBC, no suit or continuation of pending suits or proceedings shall be initiated against the corporate debtor including execution of any judgment, decree or order in any Court of law, Tribunal, arbitration panel or other authority. Therefore, the learned counsel for the petitioner-Companies prayed that the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng inconsistent contained in any other enactment including the Income Tax Act, and it was further observed by the Apex Court, while referring to the case of Dena Bank Vs. Bhikhabhai Prabhudas Parekh and Co., reported in 2000 (5) SCC 694 that the Income Tax dues, being in the nature of Crown Debts, do not take precedence even over secured creditors, who are private persons. 7. In his arguments, learned counsel for the petitioners also submitted that by virtue of Section 238 of the IBC, the provisions of the IBC shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. Hence, learned counsel for the petitioners submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per Section 201(1-A)(3) of the said Act, the respondents, before expiry of seven years, namely on or before 31.03.2018, should make an order under Section 201(1) of the said Income Tax Act and in default for failure to deduct the whole or any part of tax from a person who is resident in India, the second respondent, after giving notice, has passed the present impugned orders and since the impugned orders are passed under Section 201(1) and 201(1-A) of the Income Tax Act, it is to be treated only as an intimation of the existing demand sent to the assessee holding PIN, and hence, it cannot be construed as coercive measures being taken against the petitioner-Companies. 9. Be that as it may. When there has been an order passed by the NCLT, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial sector regulator. (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: 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." "Section 238: Provisions of this Code to override other laws:- The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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