Relying on Supreme Court precedent, the Tribunal held that the IBC has overriding effect over the Income-tax Act. The decision confirms that tax appeals cannot survive once insolvency proceedings are approved.
The Tribunal held that a reassessment notice issued to a company already struck off from the ROC is invalid. Since the entity had ceased to exist, the entire reassessment and assessment proceedings were quashed.
Applying judicial relief on Section 115BBE, the remaining tax demand fell below the prescribed threshold. The ruling reiterates that revenue appeals must be dismissed when tax effect is below CBDT limits.
The Tribunal ruled that purchases cannot be treated as bogus merely because suppliers did not reply to Section 133(6) notices. When books are audited, evidence is produced, and sales are accepted, disallowance under Section 69C is unsustainable.
The Tribunal ruled that cash deposited during demonetisation came from genuine business sales already offered to tax. It held that taxing the same amount again under Section 68 and Section 115BBE would amount to impermissible double taxation.
The Tribunal held that documented WhatsApp communications established counsel’s negligence and the assessee’s due diligence, justifying condonation of delay. The matter was restored for fresh adjudication to ensure substantial justice.
The ITAT held that once a resolution plan is approved under the IBC, income-tax proceedings cannot continue. Revenue appeals challenging deletion of additions were dismissed.
The addition was set aside as no cash was found, traced, or shown to be received by the assessee. Mere suspicion or inference cannot substitute proof under section 69A.
The Tribunal held that estimating commission income without corroborative evidence is unsustainable. Audited accounts and consistent interest income showed genuine business activity, leading to deletion of the addition.
The Tribunal held that income tax appeals cannot continue during CIRP, as the IBC moratorium bars parallel proceedings. Claims not forming part of an approved resolution plan cannot be pursued.
