DCIT Vs Gigeo Construction Co. Pvt. Ltd. (ITAT Nagpur)
ITAT Nagpur held that when a liquidation order has been passed, no suit or other legal proceedings shall be instituted by or against the corporate debtor. Thus, IBC Code will override anything inconsistent contained in any other enactment, including Income Tax Act.
Facts- The Revenue has filed appeals for the assessment year 2007-08 and 2009-10, which arose out of the impugned orders of even date 21/06/2016, and the assessee has also filed its appeal for the assessment year 2003–04, which arose out of the impugned order dated 28/12/2016.
Notably, the assessee company had gone under insolvency proceeding under Insolvency and Bankruptcy Code Act, 2016, and furnished a copy of the order dated 04/06/2024, passed by the National Company Law Tribunal (“NCLT”), Mumbai Bench-VI, a copy of which is placed on record vide Paper Book Page–7 to 27, whereby, as per order passed by the NCLT, pending proceedings before the Tribunal has been prohibited.
Conclusion- Co-ordinate Bench of the Tribunal, Mumbai, in Pratibha Industries Ltd. v/s DCIT, has held that subject to section 52, when a liquidation order has been passed, no suit or other legal proceedings shall be instituted by or against the corporate debtor; Therefore, we are of the considered opinion that no suit or other legal proceedings shall be initiated by or against the corporate debtor which is also applicable for pending proceedings and the proviso to section 33(5) also provides prior approval of the Adjudicating Authority to be obtained by the Official Liquidator.
