The AO made addition\u00a0 under section 68 related to transaction of share capital and share premium which was taken from different entities against the high premium. CIT(A) up held the order of the AO. On appeal the\u00a0 the assessee submitted that assessee-company was under Corporate Insolvency Resolution Process (CIRP) and resolution plan was approved by the NCLT. Tribunal held that \u00a0IBC is a complete Code in itself and in view of provisions of section 238 of IBC, provisions of IBC would prevail notwithstanding anything inconsistent therewith contained in any other law for time being in force including Income-tax Act which has been specifically provided under section 178(6) of the Income-tax Act as amended with effect from 1-11-2016. Once resolution plan is approved by Adjudicating Authority, dues including statutory dues of Government or local authority, if not part of resolution plan, gets extinguished and no proceedings in respect thereof for a period prior to date of approval under section 31 can be initiated against corporate debtor, that is, assessee company including income tax proceedings\u00a0 Therefore, where assessee-company was under Corporate Insolvency Resolution Process (CIRP), no proceedings could be initiated against assessee-company including income tax proceedings and recovery of demand or giving effect of any order; appeal filed by assessee against addition made by Assessing Officer under section 68 in respect of share application money is \u00a0be dismissed as infructuous. (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 178 : Company in liquidation-Stay-Share application money- Corporate Insolvency Resolution Process (CIRP)-No proceedings could be initiated against assessee-company including income tax proceedings and recovery of demand or giving effect of any order. [S. 68,178(6), Insolvency and Bankruptcy Code, 2016, S. 31, 238] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48778","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cGK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48778"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48778\/revisions"}],"predecessor-version":[{"id":48779,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48778\/revisions\/48779"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}