Case Law Details
Oasis Textiles Ltd. Vs DCIT (ITAT Ahmedabad)
If we examine the facts of the case on hand, assessment year involved is 2015-16, and the AO has passed the assessment order on 27.12.2017, and the appellate order thereupon was passed on 27.12.2018. While NCLT has passed Resolution plan on 22.11.2017, and in the absence of any Resolution Plan, it was ordered to be liquidated vide order dated 22.11.2017. On completion of liquidation process, assessee-company was dissolved by the NCLT vide order dated 30.6.2020. The claim of the Department was prior to the date of Resolution Plan approved by the NCLT, and therefore, the present income tax proceedings is hit by section 31(1) of Insolvency and Bankruptcy Code, 2016, which has overriding effect vis-à-vis the Income Tax Act, 1961. All these events are within the knowledge of the Income Tax Department, as the OL of assessee-company has intimated the Department from time to time in writing, but no action has been taken by the Department. Once a company is dissolved it becomes a non-existent party and therefore no action can be brought in its name. Therefore, in view of overriding effect of IBC code to the Income Tax proceeding, we hold that Revenue is not entitled to recover the claim, if any arising from the present proceedings for Asst.year 2015-16, as the same is not part of the resolution plan.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the assessee against order dated 27.12.2018 passed by the Ld. Commissioner of Income-tax (Appeals)-9, Ahmedabad [for short “Ld.CIT(A)] in appeal No. CIT(A)-9/10371/ DCIT Cir.3(1)(2),Abd/15-16 relating to the assessment year 2015-16.
2. Though the assessee has raised as many as six grounds, but solitary issue involved in this appeal is that the ld.CIT(A) has erred in confirming disallowance of Rs.1,13,65,136/- on account of loss incurred out of trading in shares.
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