# In the matter of Income Tax Department vs. Shikhar Chand Jain, Liquidator of the Corporate Debtor of Hariom Rice Mill Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-05-15. Citation: TCN-2024-NCLAT-00433. The Income Tax Department filed an appeal challenging the order dated 11.10.2023 passed by…

- **Court:** NCLAT
- **Order date:** 15 May 2024
- **Citation:** TCN-2024-NCLAT-00433
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/income-tax-department-vs-shikhar-chand-jain-liquidator-of-the-corporate-debtor-o-8997652c

## Summary

### Background

The Income Tax Department filed an appeal challenging the order dated 11.10.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Cuttack Bench, Cuttack) in IA (IBC) No.196/CB/2023 in CP (IB) No.249/CB/2020. The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor M/s. Hariom Rice Mill Pvt. Ltd. commenced on 09.06.2021. No Resolution Plan was approved, leading to a Liquidation order by the Adjudicating Authority. The Appellant submitted their claim in Statutory Form-C to the Liquidator. The Liquidator informed the Appellant about the admission of their claim of Rs.1,35,64,98,726/-. Subsequently, an e-Auction was held by the Liquidator, and Rashik Bihari Food Pvt. Ltd. was declared the Successful Bidder. The Income Tax

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## Facts

The Corporate Insolvency Resolution Process (CIRP) against Hariom Rice Mill Pvt. Ltd. commenced on 09.06.2021. No resolution plan was approved, leading to a liquidation order. The Income Tax Department, as a creditor, submitted a claim of Rs.1,35,64,98,726/-. An e-auction was conducted, and Rashik Bihari Food Pvt. Ltd. was declared the successful bidder. The Income Tax Department was informed that their claim would be considered as per the waterfall mechanism. Hariom Rice Mill Pvt. Ltd. sought permission from the Adjudicating Authority to conclude the liquidation as a going concern. The Adjudicating Authority issued directions regarding the treatment of carry forward losses under Section 79(2) of the Income Tax Act, 1961. The Income Tax Department filed an appeal

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in its order regarding the treatment of carry forward …

**Ratio:** The legal principle is that the Adjudicating Authority itself has not passed any order

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**Reasoning:** The court reasoned that the Adjudicating Authority's order did not definitively allow or

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**Interpretation:** The interpretation is that the Adjudicating Authority's role is limited to

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**Application:** The ratio and reasoning apply to the specific facts because the Income Tax

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Income tax…
- **Respondents:** Hariom Rice Mill…; Shikhar Cha…
- **Advocates:** Maithili…; Sandeep…; +2 more

## Timeline

- **2021-06-09 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) against Hariom Rice Mill Pvt. Ltd.…
- **2023-02-03 — Letter of Inte…**: Letter of Intent (LoI) was issued to Rashik Bihari Food Pvt. Ltd. as the Successful…

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