Income Tax Appeals Dismissed Due to NCLT Moratorium Against Personal Guarantors

Shefali Bansa Vs DCIT (ITAT Delhi)

The assessees’ appeals against search assessments under section 153A/143(3) for AYs 2013-14 and 2014-15 were not examined on merits because of a supervening insolvency development. As noted from the NCLT order dated 08.01.2026 (referred to on page 3 of the Tribunal order), insolvency proceedings were admitted against the assessees in their capacity as personal guarantors, and a statutory moratorium of 180 days was imposed.

During this moratorium, all legal proceedings in respect of debts against the applicants stand stayed and creditors are barred from initiating or continuing legal actions. In view of this binding bar, the Tribunal held that it could not proceed with the pending income-tax appeals.

Accordingly, all four appeals were dismissed at this stage as not maintainable during the currency of the moratorium, while expressly granting liberty to the assessees to file fresh appeals after the final outcome of the NCLT/NCALT proceedings. No findings were given on the merits of the tax additions.

FULL TEXT OF THE ORDER OF ITAT DELHI

The captioned appeals, preferred by the assessees, are directed against separate orders of the Ld. CIT(Appeals)-28, New Delhi in proceedings under Section 153A/143(3) of the Income Tax Act, 1961 (herein after referred to as the “Act”). Relevant details are tabulated as under:

All these appeals were taken up analogously for hearing and are being disposed of by a single composite order for the sake of convenience.