TMI Blog2018 (12) TMI 1866X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to treat the impugned orders as only intimation of demand, without enforcing the demand and the impugned orders are only the orders passed under Section 201(1-A)(3) of the Income Tax Act, and since the financial year of the petitioners is 2010-2011, as 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 treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner-Companies have filed the above Writ Petitions praying for issuance of Writs of Certiorari to call for the records of the second respondent comprised in the impugned orders and the consequential demand notices, 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. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime from the respondents. 5. It is further stated by the learned counsel for the petitioner-Companies that on 12.03.2018 / 19.03.2018, the National Company Law Tribunal (for short, 'the NCLT'), Mumbai, had admitted the 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 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Monnet Ispat and Energy Limited), in which the said order of the Delhi High Court was confirmed by the Apex Court and in that case, the Supreme Court, while dealing with Section 238 of the IBC, held that IBC will over-ride anything 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 sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders as only intimation of demand, without enforcing the demand and the impugned orders are only the orders passed under Section 201(1-A)(3) of the Income Tax Act, and since the financial year of the petitioners is 2010-2011, as 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified shall not be terminated or suspended or interrupted during moratorium period. (3) The provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government in consultation with any financial 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 liq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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