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TMI Blog2025 (1) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 pertaining to assessment years 2013- 14, 2014-15 & 2015-16 and 2013-14 arise out of the assessment order dated 30.12.2016 under section 153(A) r.w.s. 143(3) of the IT Act, 1961 of the Income Tax Act 1961 [hereinafter referred as 'the Act'] where the appeal no.4650/Del/ 2018 is against the order of the penalty passed by the Assessing Officer. 2. Since, the issues are common and connected, these appeals are being disposed of by this common order for the sake of convenience. Grounds of appeals taken by the assessee are common in all the three years except the difference of amount. The grounds taken in the appeal being ITA No.4650/Del/2018 for assessment year 2013-14 are under: 1. Ground 1: The learned CIT(A) erred in passing penalty order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80,94,97,963/- by applying the best judgement method under section 144 of the Act and using the Gross Profit/Net Profit rate of Tata Steel Ltd (which operates and functions in entirely different conditions). The Id. CIT(A) conclusions are based on suspect logic, erroneous interpretation of facts and incorrect interpretation of law whereby the conditions, precedent justifying the levy of penalty for any of the limbs specified in section 271(1)(c) of the Act are absent; 2.2 The Id. CIT(A) has failed to appreciate the fact that the additions, which form the basis for levy of penalty, have been made on an estimated basis which process itself being prone to wide variations being dependent on individual mind frames and though processes is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der CIT(A) order. 3.2 The Id. CIT(A) has erred in levying penalty on addition /disallowance of Rs. 48,82,10,037/- (comprised of alleged bonus Zinc purchased from M/s Hindustan Zinc Limited of Rs. 47,96,05,498/- and transport expense paid to M/s Mewat Transport Company of Rs. 86,04,539/-) while computing the income under the normal computational provisions of the Act. 3.3 The Id. CIT(A) has failed to appreciate that, the Appellant has with the object to putting an end to protracted litigation had opted for settlement before the Customs and Central Excise Department and the same cannot become basis for levy of penalty under section 271(1)(c) of the Act. 4. Ground 4: Levy of penalty in disallowance under section 14A of the Act 4.1 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company were also started for the assessment year 2013-14. 4. Aggrieved with the order of ld. Assessing officer, the assessee company filed the appeal before the Ld. CIT(A), who vide his order dated 29-12-2017 dismissed the appeals against which the assessee company is in further appeal before the Tribunal. 5. We have heard the rival arguments and perused the material available on record. 6. Learned counsel for the assessee has submitted that since the National Company Law Tribunal (NCLT) is seized of the proceedings initiated under section 7 of the Insolvency and Bankruptcy Code, 2016 and has already approved a resolution plan and granted the moratorium in respect of any other proceedings pending before any authority or tribunal etc., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Arbitration Resolution Plan/Process has been accepted by the NCLT. At this juncture, we refer to the decision of Hon'ble Supreme Court in the case of Ghanshyam Manz Retails Pvt. Ltd. Mishra and Sons Pvt. Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd. reported in (2021) 126 Taxmann.com 132 wherein the Hon'ble Supreme Court has considered a situation wherein, the resolution plan was approved by the adjudicating authority under Section 31(1) of the IBC Code. Hon'ble Supreme Court observed that, once the resolution plan was drawn, the claim as provided in the resolution plan stood frozen, and will be binding on the corporate debtor, its employee, its members, creditors, Central Government and any State Government or legal authority, guarant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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