Case Law Details
Jet Airways (India) Ltd. Vs DCIT (ITAT Mumbai)
Introduction: In a pivotal move, the Income Tax Appellate Tribunal (ITAT) Mumbai has issued a significant order involving Jet Airways (India) Ltd., currently embroiled in insolvency proceedings before the National Company Law Tribunal (NCLT). The ITAT has mandated Jet Airways to contribute Rs 25,000 to the Prime Minister Relief Fund, setting a precedent regarding the necessity of adherence and cooperation during the insolvency resolution processes.
Detailed Analysis
Jet Airways, established on April 1, 1992, and once a leading figure in the Indian aviation sector, has been facing severe financial turmoil, leading to the initiation of corporate insolvency resolution process under the directives of the Hon’ble NCLT. This resolution process has significantly impacted the airline’s ability to participate fully in the tax assessment proceedings for the assessment years 2012-13 through 2015-16.
Throughout the assessment process, initiated upon the discovery of discrepancies during a survey conducted by the Investigation Wing, Mumbai, Jet Airways failed to comply with the statutory notices issued by the assessing officer, citing its ongoing insolvency resolution process as a hindrance. Despite multiple opportunities provided to present its case, the airline’s submissions were limited to requesting the assessments be held in abeyance due to the NCLT’s directive.
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