Gayatri Projects Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that once the moratorium is granted to the corporate debtor, then, the Income Tax Department cannot proceed to recover any dues, but, there is no bar under the IBC Code, 2016 or under the Income Tax Act, 1961, to continue the proceedings to determine the tax liability.
Facts-
The assessee has filed petition seeking for condonation of delay explaining the reasons that, the Company is under Corporate Insolvency Resolution Process which was commenced by the National Company Law Tribunal, Hyderabad vide order dated 15.11.2022 and Resolution Professional was appointed who is required to manage the operations of the Company as a “going concern”. Further, due to the commencement of CIRP, many employees particularly all the Senior Personnel in Finance and Taxation Department have left the organization and is currently operating with very limited staff. Further, the appellant company has received the order of CIT(A) by dismissing the appeal in limine. Thereafter, a revised claim was received from Income Tax Department vide email dated 06.01.2025 and also penalty was levied for the years where appeal was dismissed in limine. Thereafter, the assessee company has approached his Counsel for taking action under Income Tax Act in view of the settled legal position with respect to adjudication of income tax appeal for Companies under Corporate Insolvency Resolution Proceedings by virtue of Order of ITAT, Mumbai in the case of Varun Resources Ltd., vs., ITO [2024] 164 taxmann.com 748 [Mum.Tribu.].
