Disposed

Srei Infrastructure Finance Limited v. Assistant Commissioner of Income Tax Kolkata and Ors.

Calcutta HC27 Jul 2023WPO/2494/2022

Case brief

AI extract

What is this about?

The Calcutta High Court disposed of three writ petitions共同 addressing income tax proceedings against a debtor under IB Code moratorium. The Court directed tax authorities to stay notices for the moratorium period without adjudicating jurisdiction.

What did the court decide?

Counsel for petitioner directed to request respondents to stay tax proceedings during moratorium; jurisdiction issue remitted to later.

Srei Infrastructure Finance Limited Vs Assistant… — Insolvency and Bankruptcy | Calcutta HC (2023)

¶1

2, 3 & 4

¶2

ORDER SHEET

¶3

IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE

¶4

WPO/2493/2022

¶5

SREI INFRASTRUCTURE FINANCE LIMITED VS

¶6

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 11 (I) KOLKATA AND ORS

¶7

WPO/2494/2022

¶8

SREI INFRASTRUCTURE FINANCE LIMITED VS

¶9

ASSISTANT COMMISSIONER OF INCOME TAX KOLKATA AND ORS

¶10

WPO/2495/2022

¶11

SREI EQUIPMENT FINANCE LIMITED VS

¶12

ASSISTANT COMMISSIONER OF INCOME TAX AND ORS

¶13

BEFORE:

¶14

The Hon’ble JUSTICE SHEKHAR B. SARAF Date: 27^th July, 2023.

¶15

Appearance: Mr. Somak Basu, Adv. Mr. Swagato Kabiraj, Adv. …for the petitioner

¶16

Mr. Soumen Bhattacharya, Adv. …for the respondents

¶17

The Court: The above three writ petitions deal with the same issue and are

¶18

taken up conjointly, and accordingly, order is passed in both the writ petitions herein.

¶19

¶20

Counsel appearing on behalf of the petitioner submits that the petitioner is under moratorium for the assessment years 2014-15, 2013-14 and 2013-2014 as per the Insolvency and Bankruptcy Code, 2016, by an order dated 8^th October, 2021, passed by the National Company Law Tribunal, Kolkata Bench, Kolkata in C.P. (IB) No.294/2021. He, accordingly, submits that the petitioner is under a moratorium and no proceedings can be initiated or continued against the petitioner. He relies on several judgments of the Supreme Court and the High Court in this respect. It may be noted that the Division Bench of the Calcutta High Court comprising of the Hon’ble Chief Justice T.S. Sivagnanam and the Hon’ble Justice Hiranmay Bhattacharyya dealt with the similar issue with regard to the petitioner. The ratio of the same is provided below:

¶21

“7. At this juncture, it would be important to note the decision the Hon’ble Supreme Court in the case of Alchemist Asset Reconstruction Company (supra), wherein the Hon’ble Supreme Court had pointed out that the mandate of the new insolvency Code is that the moment an insolvency petition is admitted, the moratorium that comes into effect under Section 14(1)(a) expressly interdicts institution or continuation of pending suits or proceedings against corporate debtors. This legal principle should have been borne in mind by the assessing officer before he proceeded to pass the assessment order. Therefore, we are of the clear view that the assessment order dated 30^th March, 2022 has to be set aside and the matter has to be restored to the file of the assessing officer and the matter shall be kept in abeyance till the completion of the insolvency resolution proceedings.”

¶22

In light of the same, the respondent authorities are directed to stay their hands and not proceed with the notices issued for the period of moratorium of the petitioner.

¶23

¶24

Furthermore, I make it clear that this Court has not gone into the issue of jurisdiction that has been raised by the petitioner. Accordingly, the petitioner

¶25

shall be at liberty to raise all points of law once the moratorium is lifted.

¶26

With the above observations, the writ petitions being WPO/2493/2022, WPO/2494/2022 and WPO/2495/2022 are disposed of.

¶27

(SHEKHAR B. SARAF, J.)

¶28

sp/

Srei Infrastructure Finance Limited v. Assistant Commissioner of Income Tax Kolkata and Ors.

Case brief

What is this about?

What did the court decide?

Srei Infrastructure Finance Limited v. Assistant Commissioner of Income Tax Kolkata and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Silverline Broadband Services Pvt. Ltd. & Anr. Vs Union of India & Ors.

Max Mara Fashion Group Srl Vs the Intellectual Property Appellate Board & Ors.

Sree Sree Iswar Gopal Jew Thakur Vs State & Ors.

Srei Infrastructure Finance Limited Vs Assistant Commissioner of Income Tax, Circle 11 (I) Kolkata and Ors.

Srei Equipment Finance Limited Vs Assistant Commissioner of Income Tax and Ors.

Tanima Ghosh Nandi Vs Manish Jain Principal Secretary School Education Deptt