Held that the Commissioner (Appeals), without going into the merits, deleted the addition as not sustainable in terms of section\u00a033(5)\u00a0of the Code, on the ground that the assessee was undergoing liquidation. On appeal the Tribunal held that \u00a0\u00a0the Assessing Officer and the Commissioner (Appeals) had knowledge of the fact that the assessee, the corporate debtor had gone into liquidation by order dated December 4, 2018 passed under section\u00a033\u00a0of the Code by the National Company Law Tribunal and had appointed the official liquidator of the corporate debtor. The Commissioner (Appeals) had erred in not adjudicating the matter on the merits, since it was with respect to the determination of tax dues only, especially when the liquidator himself was pursuing the matter before the first appellate authority. The matter is\u00a0 restored to the Commissioner (Appeals) for disposal on the merits in accordance with law after affording the assessee (corporate debtor) an opportunity of hearing through the liquidator.\u00a0 The non obstante clause in section\u00a0238\u00a0of the\u00a0Insolvency and Bankruptcy Code, 2016\u00a0clarifies that the Code shall have the effect of overriding the provisions of other laws. Section\u00a0178(6)\u00a0of the\u00a0Income-tax Act, 1961, as amended with effect from November 1, 2016, makes it clear that the Code will override the provisions of the Act. The Income-tax authorities have limited jurisdiction to assess or determine the quantum of Income-tax dues but have no authority to initiate recovery of such dues at its own during the period of moratorium in violation of section\u00a014\u00a0or section\u00a033(5)\u00a0of the Code. The Income-tax authorities are like any other creditor, may stake their claim before liquidator or adjudicatory authority as the case may be, within the statutory limitation period provided under the Code for substantiating its claim under the waterfall mechanism related to the order of priority as provided under section\u00a053\u00a0of the Code. (AY.2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-Moratorium in force-Liquidation-Insolvency and Bankruptcy laws-Code has overriding effect over provisions of Act-CIT(A) is wrong in not adjudicating matter on merits-Matter restored to Commissioner (Appeals) for disposal on merits after affording assessee opportunity of hearing through Liquidator. [S. 147, 148, 178(6), (Insolvency and Bankruptcy Code, 2016,S. 14, 33(5), 53, 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-51416","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dni","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51416","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=51416"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51416\/revisions"}],"predecessor-version":[{"id":51417,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51416\/revisions\/51417"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}