No proceedings can continue against corporate debtor during pendency of insolvency proceedings: ITAT
CA Pratibha Goyal | May 6, 2022 |
No proceedings can continue against corporate debtor during pendency of insolvency proceedings: ITAT
In this case, six appeals were filed with Income Tax Appellate Tribunal (ITAT) by the Dy. Commissioner of Income-tax.
At the time of the hearing, the assessee preferred the application for adjournment of the hearing where it has been stated that the assessee is undergoing an insolvency resolution process. The insolvency resolution professional has also been appointed and therefore the matters may be adjourned.
As per ITAT in view of Section 14 of IBC 2016, no proceedings can continue against the corporate debtor during the pendency of insolvency proceedings.
The learned Departmental Representative also agreed to the above proposition. He further submitted that the department should be granted liberty to file an appeal as soon as the insolvency proceedings are complete.
Therefore, all the six appeals filed by the learned Assessing Officer were dismissed by ITAT with the liberty to file an application for recalling this order as soon as the insolvency proceedings are over.
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