PCIT Vs DBM Geotechnics And Construction Pvt. Ltd. (Bombay High Court)
The Bombay High Court considered an appeal filed by the Revenue under Section 260A of the Income-tax Act, 1961 challenging the order dated 12 May 2023 passed by the Income Tax Appellate Tribunal (ITAT), Mumbai Bench, which had dismissed the Revenue’s appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2012-13. The Revenue proposed substantial questions of law concerning the deletion of subcontract charges amounting to Rs.15,37,38,561/- paid to M/s. Naftogasz (India) Pvt. Ltd., contending that the assessee had failed to discharge the burden of proof during assessment and remand proceedings and that the ITAT had erred in holding that no adverse material had been produced by the Assessing Officer.
The Court noted that the Assessing Officer had completed the assessment under Section 143(3) of the Income-tax Act on 13 March 2015 by making certain additions to the returned income. The assessee challenged the assessment before the CIT(A), who, by order dated 31 August 2018, partly allowed the appeal and granted substantial relief. Aggrieved by that order, the Revenue filed an appeal before the ITAT on 31 October 2018.
Subsequently, an operational creditor initiated proceedings against the respondent-assessee under Section 9 of the Insolvency and Bankruptcy Code, 2016. By order dated 30 August 2019, the National Company Law Tribunal (NCLT) admitted the application and commenced the Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (CoC) approved a Resolution Plan on 15 February 2021, which was thereafter approved by the NCLT on 25 January 2023.
