# Srei Equipment Finance Limited Vs. Additional/Joint/Deputy/Assistant Commissioner of Income Tax and Others A.P.O.T NO. 77 OF 2022
IA NO.GA/1/2022
ARISING OUT OF
W.P. NO. 1839 OF 2022

> HC judgment dated 2022-05-10. Citation: TCN-2022-HC-00045. The case involves an appeal against an order dismissing a writ petition related to an income tax…

- **Court:** HC
- **Order date:** 10 May 2022
- **Citation:** TCN-2022-HC-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/srei-equipment-finance-limited-vs-additionaljointdeputyassistant-commissioner-of-aed341d8

## Summary

### Background

The case involves an appeal against an order dismissing a writ petition related to an income tax assessment. The appellant/assessee, SREI Equipment Finance Limited, is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). The appellant challenged a show cause notice issued under Section 263 of the Income Tax Act, 1961, arguing that the proceedings should be stayed due to the CIRP and the moratorium under Section 14 of the IBC. The assessing officer proceeded with the assessment despite the CIRP and without providing a proper personal hearing. The writ court dismissed the petition, leading to the current appeal.

## Facts

SREI Equipment Finance Limited is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant received a show cause notice dated March 23, 2022, under Section 263 of the Income Tax Act, 1961, proposing to give effect to an order passed by the PCIT, Kolkata-II. The appellant replied on March 26, 2022, contending that the proceedings should be stayed due to the CIRP and the moratorium under Section 14 of the IBC. The assessing officer proceeded to pass an assessment order dated March 30, 2022, without providing a proper personal hearing, allegedly conducting a 'so called hearing' through chat messages. The appellant filed a writ petition challenging the show cause notice, and later a supplementary

…

## Issues and analysis

### Issue 1: Whether the assessing officer should have kept the proceedings in abeyance given the ongoing CIRP …

**Ratio:** Section 14(1)(a) of the IBC expressly interdicts the institution or continuation of

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**Reasoning:** The court relied on the Supreme Court's decision in Alchemist Asset Reconstruction

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**Interpretation:** The court interpreted Section 14(1)(a) of the IBC as creating a mandatory

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**Application:** The court applied the ratio to the facts by finding that the assessing officer

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## Parties

- **Judges:** T. S. Siva…; Hiranmay Bhattacha…
- **Appellants:** J.P. Kh…
- **Respondents:** SREI Equipment…; Tilak M…

## Timeline

- **2022-03-23 — Show Cause…**: Assessee received show cause notice…
- **2022-03-26 — Assessee's…**: Assessee replied to the show cause notice,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/srei-equipment-finance-limited-vs-additionaljointdeputyassistant-commissioner-of-aed341d8