Mohan Lal Jain, In The Capacity Of ... vs Income Tax Officer
- CitationCompany Appeal (AT) (Insolvency) No. 414 of 2020
Ratio decidendi
The rule this decision rests on
The tax authority's assessment of a corporate debtor's tax liability is not barred during the moratorium period; what the moratorium restrains is enforcement of the resulting claim, not the assessment itself. A claim by the tax department arising from such an assessment must be submitted to the liquidator (or resolution professional), who is bound to consider and decide the claims of all claimants, and the liquidator shall take the quantified tax demand communicated to him into account when the claim is filed before him at the relevant stage.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mohan Lal Jain, In the capacity of Liquidator of Kaliber Associates Pvt. Ltd. ....Appellant
Vs.
Income Tax Officer ....Respondent
Present: Appellant: Mr. Anirban Bhattacharya, Advocate. Respondent:
ORDER
12.03.2020: The Liquidator has moved this appeal against the order dated
7th February, 2020, which reads as follows:-
"ORDER
CA-1028/2020 has been filed by the Liquidator aggrieved by
the fact that the Income Tax Assessment of the Corporate
Debtor has been done during the period of moratorium. It is
submitted that the Company is not liquidation. We do not find
merit in the arguments advanced by the ld. Counsel for the
Liquidator that the assessment cannot be made during the
period of moratorium. It is the different thing that it cannot be
enforced during the period of moratorium. The claim, if any, of -2-
the Income Tax Department has to be received by the
Resolution Professional/ Liquidator. On a demand
quantifying the tax assessed communicated to the liquidator
he shall take the same into consideration should the claim be
filed before him at the relevant stage. CA stands disposed
off."
2. Having heard learned counsel for the Appellant we are not inclined to
interfere with the impugned order as the Liquidator is bound to decide the claims
of all the claimants. The appeal is dismissed. No costs.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial)
[Shreesha Merla] Member (Technical) am/gc
Company Appeal (AT) (Insolvency) No. 414 of 2020
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