Moment an insolvency petition is admitted, moratorium that comes into effect under section 14(1)(a) expressly interdicts institution or continuation of pending suits or proceedings against corporate debtors. In response to show cause notice issued to assessee, it had pointed out that proceedings were liable to be stayed since it had been admitted for Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016 (IBC) and presently was under moratorium by orders of National Company Law Tribunal (NCLT), Assessing Officer committed grave error in proceeding to complete assessment without hearing assessee on issue relating to effect of IBC and refusing to stay proceedings till completion of CIRP. Assessment order was to be set aside and matter was to be restored to file of Assessing Officer and matter shall be kept in abeyance till completion of CIRP.

Editorial Note : Honourable single judge observed , Professional misconduct by Advocate  and Rude behaviour in court and addressing the Chair in highly disrespectful manner.  Cost of Rs 10000 imposed  upon advocate  .   The  division bench  held  that adverse observations and comments against the learned Advocate for the Appellant/Assessee were expunged in its entirety and the imposition of costs was vacated.