Liquidation Process Bars Income Tax Proceedings: ITAT Rules Appeals Premature

DCIT Vs Mercator Ltd (ITAT Mumbai) In the case of DCIT vs. Mercator Ltd, the ITAT Mumbai addressed appeals for assessment years 2008-09 to 2014-15 amid the company’s liquidation under the Insolvency and Bankruptcy Code (IBC), 2016. Mercator Ltd, which had been ordered into liquidation by the NCLT on February 21, 2023, was found to be under moratorium, which prevents new legal proceedings against the corporate debtor. The tribunal emphasized that during this moratorium, including the income tax proceedings, no suits or legal actions can be initiated except by the liquidator with prior approva...