Income Tax Appeals Dismissed Due to NCLT Moratorium Against Personal Guarantors

Shefali Bansa Vs DCIT (ITAT Delhi)

The assessees’ appeals against search assessments under section 153A/143(3) for AYs 2013-14 and 2014-15 were not examined on merits because of a supervening insolvency development. As noted from the NCLT order dated 08.01.2026 (referred to on page 3 of the Tribunal order), insolvency proceedings were admitted against the assessees in their capacity as personal guarantors, and a statutory moratorium of 180 days was imposed.

During this moratorium, all legal proceedings in respect of debts against the applicants stand stayed and creditors are barred from initiating or continuing legal actions. In view of this binding bar, the Tribunal held that it could not proceed with the pending income-tax appeals.

Accordingly, all four appeals were dismissed at this stage as not maintainable during the currency of the moratorium, while expressly granting liberty to the assessees to file fresh appeals after the final outcome of the NCLT/NCALT proceedings. No findings were given on the merits of the tax additions.

FULL TEXT OF THE ORDER OF ITAT DELHI

The captioned appeals, preferred by the assessees, are directed against separate orders of the Ld. CIT(Appeals)-28, New Delhi in proceedings under Section 153A/143(3) of the Income Tax Act, 1961 (herein after referred to as the “Act”). Relevant details are tabulated as under:

All these appeals were taken up analogously for hearing and are being disposed of by a single composite order for the sake of convenience.

2. Heard the respective submissions made on behalf of the respective parties and perused the entire materials available on record.

3. Having regard to the order delivered on 08.01.2026, by the National Company Law Tribunal, Court-III (Special Bench), (“NCLT”) in the matter of Central Bank of India v. Mrs. Shefali Bansal and Central Bank of India v. Mr. Surender Kumar Bansal – IA-5752/2024 in IB-382(ND)/2024 & IA-5744/2024 in IB-383(ND)/2024, filed by the Resolution Professional, recommending admission of IB-382(ND)/2024 & IB-383(ND)/2024 filed by the Central Bank of India for initiation of PIRP qua the Personal Guarantor Ms. Shefali Bansal and Mr. Surender Kumar Bansal who stood as Personal Guarantors qua the financial facility extended by the Financial Creditor to Corporate Debtor namely M/s S.S.K. Trading Pvt. Ltd., admitting with a direction of to commence moratorium in relation to all the debts of the applicants and further that during the moratorium period of 180 days – (a) any pending legal action or proceedings in respect of any debt qua the applicant shall be deemed to have been stayed; (b) the creditors shall not initiate any legal action or legal proceedings in respect of any debt qua the Respondents; and (c) the debtors shall not transfer, alienate, encumber or dispose of any of the assets or his legal right or beneficiary interest therein, the instant appeals preferred by the assessee(s) cannot be proceeded with and therefore, dismissed. However, the assessee(s) would be at liberty to take appropriate steps to file fresh appeals, if so advised, on the final outcome of the proceedings before the NCALT. We order accordingly.

5. In the result, assessees’ appeals are dismissed.

Order pronounced in open court on 28.01.2026.